The Ontario Securities Commission is planning to establish a new branch dedicated to investor interests. To prove it’s serious, the OSC should make access to restitution its top priority.

When investors suffer losses through fraud or other misconduct, they just want to get their money back. Sounds simple, but it’s not. Traditionally, securities regulators haven’t done much to help inves-tors recover their losses. They focus on preventing and deterring harm, not recouping assets. Instead, they may point aggrieved investors to the Ombudsman for Banking Services and Investments to seek restitution.

But OBSI has come under siege from the financial services industry, with firms complaining about its decisions and, increasingly, refusing to comply with them. In the meantime, the courts are recognizing that investors don’t have access to justice through these industry mechanisms. Two recent decisions in Ontario have certified class-action lawsuits against firms after finding that neither OBSI nor the OSC offer investors adequate justice.

Although it’s good news for investors that class actions may become another way for them to recover their money, increased litigation is not good for the industry, or investors. Ultimately, the only real winners are the lawyers. It would be far better for both sides if investors had easier access to restitution without resorting to the courts. Yet, the issue has been handled like a live grenade by regulators.

The easiest, most obvious first step is to make the necessary reforms at OBSI to make it the industry’s go-to venue for cheap and easy investor restitution. But more is needed from the regulators themselves.

In 2004, a legislative committee report had recommended that the government and the OSC establish a practical mechanism to allow investors to pursue timely and affordable restitution. In the OSC’s latest statement of priorities, it again has pledged to work with the government to devise a way for the OSC to award compensation to investors who suffer losses because of regulatory violations. So far, these vows have come to nothing.

Now, if regulators truly want to show their devotion to investor protection, it’s time to step up and tackle the restitution question.