The Canadian Foundation for Advancement of Investor Rights (FAIR Canada) is getting a major funding boost from the Ontario Securities Commission (OSC).
The OSC announced that it’s providing the investor advocacy group with $11 million over the the next six years to finance its work on behalf of retail investors.
“FAIR provides an important and independent voice for investors, advocating for their interests on securities policy issues. This contribution provides a steady and stable source of funding over the next six years to support FAIR with its important work,” said Grant Vingoe, CEO of the OSC, in a release.
“The OSC’s support is a vote of confidence that will help fuel our advocacy efforts for individual investors,” said Jean-Paul Bureaud, executive director of FAIR Canada, in a release.
“Canadian investors are challenged by market changes, technological innovation and an increasingly complex regulatory environment. There is a need for a strong, national, independent, professional advocate. The funds will allow us to forge ahead and continue to execute our strategic plan,” he added.
The funding commitment, which is paid out of the money collected by the OSC in enforcement cases (settlements and sanctions), will be distributed in two instalments — the first tranche will be paid immediately, with the second tranche to be paid in 2027.
The group, which is now a registered charity, has long been funded by the proceeds of regulators’ enforcement activity — these funds are generally restricted to financing activities that benefit investors.
It was initially founded back in 2008 with seed financing from the restricted funds of self-regulatory organizations, Regulation Services Inc. (RS) and the Investment Dealers Association of Canada (IDA), which were merged to create the Investment Industry Regulatory Organization of Canada (IIROC) — now part of the Canadian Investment Regulatory Organization (CIRO).
Since then, the OSC has consistently provided funding to FAIR Canada too. Most recently, in 2020, the regulator allocated $3.75 million to the group, which was to be paid in annual instalments of $750,000.
Under their latest funding arrangement, FAIR is limited to drawing up to $2 million per year from the new funding facility.