Purdy Crawford Rescues the Market

The capitalist state rides to the rescue with a corporate governance model for the credit market in Canada. Don't here no crying about market interference by the state. Nope. Can't over all the applause from the vested interests.

Another nail in the coffin of the myth of the free market. It's a market and it ain't free, it's controlled by them in power. Despite all their monetarist ideology when the crisis hits they run to their nanny state.

It began in August when Quebec based National Bank, not the Central Bank, bought back its loans and shored up its Mutual Fund Altamira. Because investors, consumers, you and me, are ignorant of the market risk of some their investments.

National Bank's news release on behalf of Altamira funds may have been most educational from the investor's perspective. The bank noted that Altamira money market funds offer no assurances they can maintain their net asset value and protect against losses. It also pointed out that money market funds are not insured by Canada Deposit Insurance Corp., as are high-interest savings accounts and guaranteed investment certificates.

In shoring up the money market franchise for the mutual fund industry, National Bank has also highlighted the fact that these funds are not risk-free. This brings us back to high-interest accounts, a corner of the financial marketplace where there happens to be some stiff competition these days. The rates are higher than money market funds, fees are non-existent and federal or provincial deposit insurance offers a safety net. What a deal.

It was followed this week by the Bank of Canada joining with the private/public investment and banking sector to develop a bail out plan for institutions.

And when they say they are protecting investors ferget about it. They are protecting their investment. They are speaking of commercial investors like our pention funds and private equity as well as mutual funds.

After all the Ruling Class takes care of its own, and their investments.

A plan to rescue about $35-billion of illiquid asset-backed commercial paper moved a step forward yesterday as holders of the debt formed a committee to oversee how the proposed restructuring would happen.

And, in another sign that Canadian money markets may be inching towards stability, the Bank of Canada yesterday announced it was restoring standard collateral conditions for providing liquidity to financial institutions on an overnight basis. "While money markets continue to experience difficulties, there has been significant progress in the functioning of the overnight market," the bank said in a statement.

During the height of the recent stock-market turmoil in mid-August, the bank widened the kinds of collateral it would accept against lending to include such instruments as provincial securities and commercial paper, as well as the standard government of Canada paper.

Meanwhile, the committee overseeing the commercial paper rescue plan will be chaired by Osler, Hoskin & Harcourt lawyer Purdy Crawford and will include representatives of Canaccord Capital Corp., Canada Post, National Bank Financial and the Caisse de depot et placement du Quebec.

"Our investor committee will be looking to implement a solution that addresses the best interests of investors generally, and at the same time allows for a successful restructuring and a return to market stability for these investments," Mr. Crawford said in a statement.

Under the so-called "Montreal Proposal" troubled asset-backed commercial paper (ABCP) would be converted into longer-term debt with maturities stretching out in some cases several years into the future as a way to improve chances that investors will get their money back. Details of how the conversion will happen will likely be sorted out by this new committee.

Canadian investors stuck with illiquid asset-backed commercial paper should hang on to their investments while an investor committee attempts to find a solution that will get their money back, said the head of a committee overseeing a rescue plan.

``Hopefully if everybody stays cool and somebody doesn't start pulling plugs, this thing will work out without them having any losses,'' Purdy Crawford, who was named yesterday to lead the committee, said in a telephone interview today. ``If everybody stays cool, that's the key.''

A Pan Canadian Committee Chaired by Mr. Purdy Crawford has been formed today to oversee the proposed structuring process of the Third Party ABCP. This Committee, which includes investors who were signatories to the Montreal Proposal plus other significant holders, brings a broad cross section of investors with a national perspective, relevant experience and associations with each of private business, institutional investors, government agencies and crown corporations. Comprising this Investor Committee are now:

<< - Mr. John Crichton, President and Chief Executive Officer, NAV CANADA. - Mr. Alban D'Amours, President and Chief Executive Officer, Desjardins Group; - Mr. Gordon J. Fyfe, President and Chief Executive Officer, PSP Investments; - Mr. Doug Greaves, Vice President Pension Fund and Chief Investment Officer, Canada Post; - Mr. Rowland Kelly, Interim CEO, Credit Union Central of British Columbia, representing Credit Union Central of Canada; - Ms. Karen Kinsley, President and Chief Executive Officer, Canada Mortgage and Housing Corporation; - Mr. Mark Maybank, President & Chief Operating Officer, Canaccord Capital Corporation (Canadian Operating Subsidiary); - Mr. Dave Mowat, President and Chief Executive Officer, ATB Financial; - Mr. Ricardo Pascoe, Co-President and Co-Chief Executive Officer, National Bank Financial Group; - Mr. David G. Patterson, Chair and Chief Executive Officer, Northwater Capital Management; - Mr. Henri-Paul Rousseau, President and Chief Executive Officer, Caisse de dépôt et placement du Québec; - Mr. Jim Scopick, President and Chief Executive Officer, Credit Union

And Purdy Crawford is a player. After all he founded the Atlantic Institute for Market Studies (AIMS), which is the East coast clone of the right wing think tank the Fraser Institute.

Purdy is an excellent example of the modern member of the capitalist ruling class. They secure their positions of power through interlocking boards of directorships. He adapted his corporations during the mean and lean eighties and then in the booming nineties to create large cap companies capable of predatory take overs or become subject of take overs themselves. He adapted corporations into a new tax shelter; Income Trusts.

He recognized the current condition of capitalism; mergers and acquisitions in the age of modern financial globalization. This resulted in large scale accumulation in a single company, selling off parts of itself to global flows of capital.

It resulted in the selling off of Canadian companies to foreign investors in order to mass enough capital to take over someone else, or be gobbled up in the process if your gamble fails as was the case with Inco ,which Purdy was a director of .

And as he did with Imperial Tobacco severing it from Imasco. Which was finally bought out by its parent, the notorious cigarette smuggling BAT.

As a spokesperson for big tobacco he defended targeted marketing at youth. This qualifies him to speak on; Ethics, Values and Business Success - Purdy Crawford (May 11, 2006)

As a securities adviser he promotes his ideal of market consolidation with a single Securities commission in Canada. In a way this melt down in the market has proven his point and in rescuing the paper market will lessen the objections to it by provincial mandarins.

Does it all really matter as far as small investors are concerned? My hunch is, not very much. Of course we would all welcome a lean, mean federal commission spearheaded by a home-grown Eliot Spitzer to keep Bay Street in line. However, that is far from what Mr. Crawford and some of the other reformers have in mind. Their blueprint calls for another bureaucratic restructuring rather than a caped crusader.

Take a look at the Crawford Panel’s proposals. We are to have a new agency composed of 13 provincial and federal representatives, each having a single, equal vote, which would approve all the rules and select the regulators. In other words, the existing 13 commissions would be gathered under one roof and given equal power. The mind boggles. Can you imagine Ontario, Quebec, and Alberta all being consistently on the short end of 7 to 6 votes?

Our Global Capital Markets Plan has four key building blocks.

• First of all, enhancing regulatory efficiency by creating a common securities regulator that is principles-based, proportionate and tailored to the unique makeup of Canada’s capital markets.

• Secondly, strengthening market integrity by enhancing investor protection, pursuing the highest standards of governance and enforcing our laws more vigorously.

• Thirdly, by creating greater opportunity for business and investors by pursuing free trade in securities with the United States and other Group of Seven (G7) countries. And I’ll come back to that in a moment about where that is at in terms of our discussions internationally.

• And fourth, improving investor information by promoting financial literacy, particularly for young Canadians, by developing new financial education materials.

So these four building blocks make up the foundation of our Capital Markets Plan. None are mutually exclusive. They all support one another, and I would like to take the next few minutes to focus on one building block in particular, and that is strengthening market integrity, which begins with enforcement.

With Purdy's connections to Montreal the city and the exchange, as well as having a home there and being on the Board of McGill. Gee where do you think they would put a national Securities commission.

Canadian Securities Commission,
Calgary, Alta (or Montréal, PQ?)

PORTRAIT OF A CAPITALIST

Purdy Crawford COUNSEL Toronto Office Email: pcrawford@osler.com Tel: (416) 862-5869 Year of Call Fax: (416) 862-666 Ontario 1958 Nova Scotia 1

Purdy is a native of Five Islands, Nova Scotia, and a graduate of Mount Allison University, Dalhousie Law School and Harvard Law School. He pursued his legal career with Osler, Hoskin & Harcourt LLP, practising primarily in the corporate/commercial area. He left Osler to join Imasco as C.E.O. in 1985 - retiring as C.E.O. in 1995 but continuing as non-executive Chairman of Imasco Limited, CT Financial Services Inc. and Canada Trustco Mortgage Company until February 1, 2000.

Purdy rejoined Osler as Counsel in March 2000. He sits on the boards of several large Canadian and U.S. public companies. Purdy is Chair of the Five-Year Review Committee, appointed to review securities legislation in Ontario, and former Chair of the Securities Industry Committee on Analyst Standards. In 1996 he became an Officer of the Order of Canada. He was inducted into the Business Hall of Fame of Nova Scotia in 1997 and became a Fellow of the Institute of Corporate Directors in 1999. In 2000 he was inducted into the Canadian Business Hall of Fame and named Ivey Business Leader of the Year. He is Chancellor Emeritus of Mount Allison University.

He was the Chairman of the Atlantic Institute for Market Studies (AIMS), Chancellor of Mount Allison University, and Chairman of AT&T Canada Corporation. He was a corporate director for SEAMARK Asset Management Ltd. and is currently a member of the board of the Canadian National Railway Company. He is a Governor of the University of Waterloo.

Timeline: Purdy Crawford

Toronto
Born Nov. 7, 1931, in Five Islands, Nova Scotia
Allstream chair, corporate governance advocate

1958: Starts practising at law firm Osler, Hoskin & Harcourt; specializes in corporate-commercial area. Becomes senior partner in 1970.

1985: Joins tobacco giant Imasco Ltd. as president and COO. Is named CEO in 1986. Transforms it into a diversified holding company.

1995: Retires as Imasco CEO, but continues as non-executive chair until February 2000, when Imasco is bought by British American Tobacco.

G7 Summit, Halifax, Purdy Crawford, co-chairman of the summit sponsorship committee.

1999: Joins AT&T Canada as a director. Becomes chairman a year later. Oversees its transformation into debt-free Allstream.

2000: Rejoins Oslers as counsel. Chairs Ontario minister of finance's five year review committee, which examines securities regulations.

He is chairman of the Ontario Government's Crawford Panel on a Single Canadian Securities Regulator.

Director MTS/Allstream

Purdy Crawford Named Conference Board's 2003 Honorary Associate

The CPP Investment Board has hired Toronto lawyer Purdy Crawford as an external adviser on conflicts of interest and ethical conduct, providing a new contact for whistleblowers.

John MacNaughton, chief executive officer of the CPP Investment Board, said yesterday no other federal Crown Corporation has created a similar position with an outside, independent person in the job.

The CPP Investment Board was formed in 1997 to manage the assets of the Canada Pension Plan.

It is currently responsible for overseeing $31-billion in equity, real estate and infrastructure assets, and will also assume control of a further $35-billion in bonds and cash investments over the next few years.

Clearwater Seafoods Income Fund, the Board of Directors of CS ManPar Inc. (the managing partner of Clearwater Seafoods Limited Partnership),

CRAWFORD, Purdy, O.C., Q.C., B.A., LL.B., LL.M.; b. Five Islands, N.S. 1931; e. Mt. Allison Univ. B.A. 1952; Dalhousie Univ. LL.B. 1955; Harvard Law Sch. LL.M. 1956;

Member of the Board of AT&T Canada
Member of the Board of Avenor
Member of the Board of Camco Inc.
Member of the Board of Canada Trustco Mortgage Company
Member of the Board of Canadian National Railway
Member of the Board of CT Financial Services Inc.
Member of the Board of Dominion Textile Inc.
Member of the Board of Foot Locker
Member of the Board of Imasco Limited (as Chairman, 1985-2000)
Member of the Board of Inco Limited
Member of the Board of Maple Leaf Foods (1973-)
Member of the Board of Nova Scotia Power
Member of the Board of Petro-Canada
Member of the Board of Trinova Corporation
Member of the Board of Woolworth (-1997)

Governor Emeritus, McGill Univ.; Chancellor, Mount Allison Univ.; called to Bar of N.S. 1956, of Ont. 1958; student with Osler Hoskin & Harcourt 1956, Assoc. Lawyer 1958, Partner 1962, Sr. Partner 1970-85; cr. Q.C. 1968; Special Lectr. Osgoode Hall Law Sch. 1964-68, Univ. of Toronto Law Sch. 1969-71, Bar Admission Course 1969-72;

Co.-Secy. Atty. Gen.'s Comte. on Securities Leg. 1964-65; Chrmn. Ont. Taxation Sub-sec., Cdn. Bar Assn. 1966-68; Treas. Nat. Taxation Sec. 1968-70; Past mem. various comtes. on taxation and of Bd. Govs. Cdn. Tax Foundation 1970-72; Cdn. Inst. of Ch. Accts. Special Comm. to Examine Role of Auditor 1977-78; Accounting Rsch. Adv. Bd. 1977-79;

Chrmn. & C.E.O., Imasco Ltd. 1985-95;

Officer, Order of Canada 1996;

United Church;

recreations: bicycling, golf, skiing;

Canada's National Ballet School, Honorary Circle Members

Shannon School of Business

The National Centre for Business Law UBC

Canada's Outstanding CEO of the Year™ Advisory Board

Canadian Institute of Chartered Accountants Advisory Board

Board Member; Dalhousie University, McGill, University of Western Ontario, UPEI.

Clubs: Mount Bruno Golf; Parrsboro Golf (N.S.); Mount Royal; Forest & Stream; Granite; Toronto; Devil's Pulpit Golf & Country; York Downs Golf & Country; Caledon Ski; The Club Pelican Bay (Florida);

Homes: Five Islands, N.S. (summer) Belfountain, Ont., Toronto, Ont. and Westmount, Que.;

Office: Toronto, Ont.

------------------------------------------------------------------------------------------------

I want to thank Purdy Crawford for his introduction. Purdy is truly a great Canadian. I speak for a whole generation of leaders in many different spheres across Canada – who would say that Purdy Crawford made a difference in their lives. If you had to choose one role model, Purdy Crawford would be, for many of us, our first choice.

Ed Clark, President & CEO, TD Bank Financial Group
Remarks at the 2007 Mount Allison University Convocation.

Of course for workers, Purdy is less of a role model, as he sits on the board of CN. No doubt in part it was thanks to his government connections that helped push the Federal Government to legislate away CN workers right to strike this spring.
So explain to the CN workers about how E. Hunter Harrison's compensation made off their backs, is judged 'equitable'.

65 Means Freedom to Start a Whole New Career - March 15, 2006

Then there's Purdy Crawford. At 74, he serves on several corporate boards and is currently heading the initiative aimed at creating a single national securities regulator.

"I guess I'll slowly retire as I feel less energetic, but retirement is not the way I think about it," says Mr. Crawford, the former chief executive officer of Imasco Ltd.

Canadian workers should prepare to work beyond 65 while Purdy and pals use their pension funds for capital investment and promote extending the age of retirement.

Indeed, on a superficial level the notion of "holding corporations accountable" must seem rather appealing to a relatively broad cross-section of society, including many social and community advocates who have jumped on the corporate governance bandwagon. The language of "social responsibility" is often invoked in discussions of governance reform. Those calling for tighter control over corporate managers are often called "activists." But to whom are they asking that corporate managers be held accountable? And on what criteria? These are important questions not always addressed by those, including those on the left, beating the drum for new governance standards.

While discussing the high falutin ideals of directors control over the corporation, and its impact on CEO compensation he leaves out the need for more civil society representation on the board, from union elected directors to environmentalists, consumer adovcates, non-lawyers, etc.

Early on, the boards I was on were public boards of companies I was the lawyer for. That's a no-no today, and properly so. Boards then, depending on the circumstances, were quite the creation of the CEO. You still get quite a bit of that in the US, but here that shouldn't happen very much anymore. At least it doesn't happen where I'm involved.

Over the last eight or nine years, boards have taken much more control of companies, and CEOs are much more beholden to boards.

When I joined Imasco, I thought I'd been around so I didn't have a lot to learn. That was true of a lot of areas, but it wasn't true of operations. It was an exciting learning curve to understand how Shoppers Drug Mart operates and start adding value.

The same was true with Imperial Tobacco. I became a great believer in great operators. Business schools pay a lot of attention to strategy, but they don't pay enough attention to execution.

I went in at Imasco to become the CEO. I wouldn't have gone to become a lawyer. I might have done that today, by the way--the legal general counsel office reporting to the CEO has become much more significant. The remuneration is comparable to a fairly outstanding lawyer in a law firm. There are no pension plans with a law firm.

"The importance of good governance for confidence in Canadian capital markets" by Purdy Crawford

In the wave of corporate scandals that followed the burst of the bubble on the stock market, confidence in the business community has been badly shaken across North America. And in the subsequent wave of recriminations, business has been confronted with unprecedented scrutiny from government and regulators. Business leaders have been forced to ask about the nature, purpose and value of their enterprises beyond their bottom lines. Purdy Crawford, former chairman of Imasco and Canada Trust, was an advocate of corporate governance long before it became a flavour of the month. He looks beyond the recommendations of the Bennett- Broadbent Report and the Saucier Report in Canada, as well as the Higgs Report in the UK, and offers some simple rules for corporate governance, particularly for enhancing the independence of corporate chairs and directors.

BOARDS OF DIRECTORS - MONITORING FOR
ETHICAL STANDARDS
Purdy Crawford
Counsel to Osler, Hoskin & Harcourt LLP
Thursday October 21st, 2004
Purdy Crawford addressed the
October luncheon on the topic of
fiduciary governance. Mr. Crawford
used the Globe & Mail published
rankings of Boards of Directors
of companies that comprised
Canada’s benchmark S&P/TSX
composite index as the springboard
for his analysis on certain problems
in governance rating systems. He identified the inherent
weaknesses of this “tick the box” type approach to measuring
corporate governance and expressed his personal belief
that good long-term financial performance, or an outstanding
C.E.O., should rank higher than any ranking of the
Board of Directors. Mr. Crawford went on to talk of the
distinction between what he named fiduciary governance
(governance designed to police the integrity of the firm)
and value creating governance, and was of the view that
Canadian corporations have performed far better than those
in the US in terms of the former. Despite the current trend to
regulating fiduciary governance, Mr. Crawford expressed a
firm belief in the importance of sound leadership and
discussed the ethics and integrity program at Allstream
Corporation as an example of a solid and effective
approach. Mr. Crawford concluded his remarks by
emphasising that a culture of ethics and integrity is critical
to market credibility and maintaining confidence in the
leadership of the organization.

Then, in 2002, in the aftershock of Enron, and following investor demands to tighten up shoddy financial reporting practices, US Congress introduced the Sarbanes-Oxley Act and Canadian regulators later responded with their own set of rules. As John Carchrae, CA, chief accountant at the Ontario Securities Commission, explains, this brought greater prominence to the COSO and COCO frameworks which, although already in place, were not yet in widespread use. (For more details, see “Internal control in evolution” below.)

Purdy Crawford, who was president and CEO of Imasco Ltd. from 1986 to 1995 and a board member of several large public and private companies, is one of those who witnessed the changes in the internal auditor’s role first-hand. More than 10 years ago, he says, “the internal audit function in big companies tended to be sleepy. They were laid back, they were not a strong group.”

Eight or nine years ago things started to change, says Crawford, who is presently counsel at Osler, Hoskin & Harcourt LLP and is a member of the Canadian Business Hall of Fame. (He also sits on Manitoba Telecom Services Inc.’s board.) CEOs at the helm of corporate giants like General Electric began recruiting “swat teams” of talented internal auditors to be the eyes and ears of the company, uncovering weaknesses and helping management devise solutions to improve processes. “Today, SOX and proposed Canadian-equivalent requirements have certainly underlined the importance of the internal audit function,” he says. “One big role of internal auditing is to ... help external consultants or financial people to set up control mechanisms if they don’t exist or if they need to be strengthened.”

Not only are highly regarded lawyers such as Purdy Crawford, Q.C., and Jean Fraser, of Osler, Hoskin & Harcourt LLP, Garth Girvan at McCarthy Tétrault, and Les Viner at Torys reading about leadership these days, they are thinking about it, talking about it and taking action. Purdy Crawford, who has rejoined Oslers after most recently serving as Chairman of Canada Trust Financial Services and non-executive Chairman of Imasco, says even before he stopped practising law in 1985 to go to Imasco, he found the Harvard Business Review more interesting than the Harvard Law Review. Les Viner debates theories from the latest management literature. And James Riley at Ogilvy Renault extracts lessons in organizational growth, competition, and strategy from John Keegan’s The Face of Battle and other such military classics. They articulate such psycho-management terms as 360° feedback, EQ, and the importance of “vision”. What has the world come to?! These are supposed to be hardened, no-nonsense corporate lawyers.

“There is a revolution brewing,” exclaimed Tom Peters in 1989. That revolution, the Information/Technology Age, has since arrived and has far exceeded Peters’ predictions in terms of how massively and pervasively it would impact on the rules of economic wealth and growth, what competitive advantage is, and how people live and work. There is another revolution brewing today: in professional services. As global legal services converge and consolidate, as multidisciplinary practices enter the market, as corporate mergers escalate causing even more consolidation in the business client base, and more and more work is transacted cross-border, Canadian law firms find themselves in a difficult position. By all accounts, business is booming.

Of course not everyone is so enamored with Mr. Purdy's defense of corporate Canada when it comes to white collar crime.

---

ASC Chairman Bill Rice and Other Securities Regulators & Experts
Ignore Today's Canadian Press-Decima Poll

Add Alberta Securities Commission Chairman Bill Rice to the list of Canada's securities regulators and legal experts trying to convince us there are few high profile white collar crimes in Canada and that Canadians are less aggressive in the pursuit of law and order than Americans. Bill Rice, David Brown (former OSC Chairman and Current Chairman of the RCMP Restructuring Task Force) , David Wilson (current OSC Chairman) and Purdy Crawford (Bay Street securities lawyer and recognized architect of Canada's current securities enforcement system) are out of sync with the knowledge and standards set by Canadian society, as they are expressed in today's Toronto Star - Canadian Press report on the Canadian Press - Decima poll of Canadian attitudes towards the U.S. Conrad Black verdict and his expected jail sentencing.
"The survey of more than 1,000 Canadians found that only 8 per cent think the American jury was too severe in convicting Black on four of 11 charges earlier this month. Forty-eight per cent say the jury got it about right and 22 per cent said the verdict was not severe enough.
"Decima found that most respondents  69 per cent  would like Black to see jail time in addition to paying a fine. Just 10 per cent believed a fine is ample punishment. Some 29 per cent felt he should be sentenced to 10 years or more in prison, with another 40 per cent feeling that one to nine years would suffice."

Meanwhile, this is what Bill Rice, David Brown, David Wilson and Purdy Crawford have had to say about white collar crime in Canada:
"There's always room to improve, admits Alberta Securities Commission chairman Bill Rice. That includes changing the perception that Canada doesn't aggressively pursue rogue executives. Rice, a former securities lawyer, feels Canada too often is an easy target. Without a trial to match the visibility of Enron or WorldCom, regulators here come up short by comparison. The reality, he says, is that aggressive, U.S-style punitive action isn't the Canadian way when it comes to stock market scandals. "There is an extreme cultural difference in our approach to criminal law enforcement. We certainly don't send people away for 25 years for these kinds of things. "I happen to think our public would be horrified by it."
(Calgary Herald, "Business Scandals dog Canadian markets," dated May 28, 2007)


"David Brown, past chair of the OSC, said, "Canada's come a long way ... I think all of the pieces are in place now. We all need to give it a little more time." And he added that the lack of high-profile convictions in Canada could have something to do with a lack of high-profile crimes. "We don't seem to have seen here in Canada the high-profile failures that they have in the U.S.," he said." (Toronto Star, "Soft on White Collar Crime," May 29, 2006)



"But a small minority of firms and individuals prey on investors. Unfortunately, this small group has a disproportionate impact on the perception of Canadas capital markets. I understand the challenge of trying to close a gap between perception and reality." (OSC Chairman David Wilson Speech, "A Common Objective: Strong Investor Protection," April 26, 2007)


"Purdy Crawford, a lawyer who headed a commission that urged the creation of a single national securities regulator, said he was disappointed Canada didn't take the initiative to prosecute Black before he went to trial in the United States. "The best thing that ever could have happened to him would have been to have been prosecuted here," said Crawford, although he added the U.S. authorities' "no holds barred" approaches are also overzealous to a fault."
(Canadian Business Online,"Securities Enforcement Still Lacks Teeth Experts Say," July 17, 2007)
Canadians are well aware that economic crime is a serious problem in Canada, so the efforts of Bill Rice, David Brown, David Wilson and Purdy Crawford to coverup this fact are falling on deaf ears. The longstanding efforts of these men to coverup white collar crime and to mitigate Canada's prosecutorial response to it can only be interpreted to be a breach of trust to the Canadian people.

In a recent survey (EKOS Survey, Wave 3, 2005-2006), Canadians said economic crime was the most serious problem in Canada at 67%, gang violence rated second at 66%, and gun crime and organized crime both rated third at 54%. Terrorism rated last at 14%. When asked about what type of crimes Canadians were personally more concerned about, those polled rated economic crime first at 68%, gang violence second at 59%, gun crime third at 51%, property crime forth at 48%. Terrorism rated last at 30%.

(RCMP Integrated Market Enforcement Teams Accountability Framework - Fiscal Year Ending March 31, 2006)

On April 26, 2007, the National Pensioners & Senior Citizens Federation (450 clubs and chapters with 1,000,000 members), the United Senior Citizens of Ontario (1000 clubs with 300,000 members) and the Small Investors Protection Association jointly requested a national inquiry on the malfunctioning of Canada's securities and accounting regulation and white collar crime enforcement system.



Diane Urquhart

Independent Analyst

See:

Sub Prime Exploitation

Canadian Banks and The Great Depression

Wall Street Deja Vu

Housing Crash the New S&L Crisis

US Housing Market Crash

The Carbon Market Myth

Are Income Trusts A Ponzi Scheme

Scandal in the Alberta Stock Exchange

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Scandal in the Alberta Stock Exchange

Updated April 28, 2005

Business community not worried about Alberta Securities controversy: Klein

Welcome to the Alberta Reich. Once again, Herr Klein has allowed the fox to run the hen house. In doing so the all too predictable has happened.

Instead of admitting that provincial regulation (or non regulation ) of the Alberta stock exchange is a FAILURE and a SCANDAL of insider trading proportions. The Alberta Reichstadt circles the wagons in defense of its own, while Ralph goes golfing.

Klein still confident of the ASC
EDMONTON - Premier Ralph Klein says he does not believe investors are worried about the performance of Alberta's securities watchdog despite its recent controversies.

The Finance Minister at first dismisses media reports on abuses and questionable practices inside the ASC. Now she is supposedly acting on them. But the ASC see's itself as being above government oversight, ah the conundrum of self regulation comes home to roost with the Tories.

Alta securities commission says auditor general can't see enforcement files
Thursday, April 28, 2005
EDMONTON (CP) - The Alberta auditor general's investigation into the Alberta Securities Commission has hit a snag. Commission officials say they failed to reach an agreement with Fred Dunn about the parameters of his probe and that if they can't find common ground, they will refuse him access to their files. ASC spokesman Rod McLeod said he's not sure where the two sides go now. "We told Mr. Dunn that his proposed scope of audit may require the ASC to breach statutes and legal obligations placed upon us by the Securities Act (and) that we cannot and will not do," McLeod told reporters in Calgary. He said they are waiting for a written response from Dunn. "If we can live with the (parameters), we'll proceed. If we cannot, we'll have no alternative but to deny Mr. Dunn access to documents we feel statutorily obligated to protect."

Finance Minister Shirley McClellan tried to referee the two provincial bodies Thursday, saying she is confident both sides can work it out and the probe will go ahead. "I have every confidence that the auditor general and the securities commission and their legal people will interpret the appropriate sections and ensure that within the bounds of the legislation that the auditor general will receive all the information that's pertinent to his investigation," she told the legislature. She pointed out that both bodies were creatures of the Alberta legislature and said she was confident they will sort out who has authority to do what.

ASC Restrictions Ruin Any Chance of Proper Investigation, Taft

Edmonton – Alberta Liberal Leader Kevin Taft is calling the Alberta Securities Commission’s efforts to restrict the Auditor General’s investigation of the commission proof positive that the review will fall well short of getting to the bottom of recent allegations.

ASC sets restrictions on audit information

By DAVE EBNER

Friday, April 29, 2005 Page B10 Globe and Mail

The Alberta Securities Commission has placed restrictions on the information the Alberta Auditor-General can look at in an audit of the regulator. The ASC, which is dealing with a controversy over questionable enforcement practices, said the Alberta Securities Acts deems all information connected to enforcement matters to be confidential. The Auditor-General is planning to release a report on its audit in July and this week outlined specific things it wanted to look at, including procedures the ASC uses to ensure that "conclusions or decisions are adequately documented." The ASC restrictions "ruin any chance of proper investigation," said Kevin Taft, leader of Alberta's Opposition Liberals.

Instead of admitting there is a serious if not criminal situation inside the ASC the Finance Minister calls on the workers to blow the whistle on their bosses. And, again predictably, when they do they get fired by their ASC bosses in order to cover up their excesses and abuses. Catch 22.

De-Regulation, self regulation, all the so called free market solutions to the crisis of the Capitalist state are applied here in Alberta with Republican-lite glee. As a result of the Wild West atmosphere of the oil boom without end, the serious flaws in the de/un regulated market are swept up under the carpet of oh look there’s another gusher.

How many failures of privatization and deregulation must occur before the Alberta Volk wake up and smell the coffee. Let me count the ways……Ralph’s offer of being hung, drawn and quartered still stands…..when will we take him up on it…..

The scandals in Alberta, the democratic deficit, the pocketing of taxpayers money for contract work that wasn’t tendered nor ever done, by a Tory insider, the failure of electrical deregulation, the current ASC scandal, every problem in Ottawa is once again mirrored in Alberta.

This is what happens when political parties are in power too long and without opposition that can defeat them. Such was the case after eight years of Mulroney’s Conservatives in Ottawa and after ten years of the Chrétien Liberals in power.

In Alberta the Party of Calgary has been in power for 33 years, and Ralph has been in power for 11 of those. Just think of all the skeletons in the Legislature that they have accumulated.

Below are the current updates, as they say watch this space as more of the facts behind this MAJOR STOCK EXCHANGE SCANDAL are revealed.

Following the updates are the April 1 and March 23 stories that exposed the scandal in the ASC. See the comments section where I have added the news updates between April 1 and April 23 when the ASC bosses began their campaign of intimidation of the staff.

Click here for Google news links to all the stories on the ASC. This just gets better and better, and the silence from the Government or at least Ralph is deafening. This is the Ad scam of Alberta.

THE ASC WITCH-HUNT BEGINS

The Alberta Government began investigating the ASC because of pressure from the media and the financial industry.

The audit they have called for has resulted in exposing ASC staff to arbitrary dismissal by their ASC bosses for being Whistle Blowers in the ASC...

According to the provincial Liberals; The Witch Hunt is On.

Internal Audit Committee an Extension of PC Party into Government

Kevin Taft, leader of the opposition Liberals, said an out-of-province investigator is needed to clear up the "sorry mess." "We basically have a clubby situation in which Tories are investigating Tories . . . and lo-and-behold the real picture never emerges," Mr. Taft said. "There is too much smoke for there not to be some serious fire burning there." Globe and Mail April 26 2005

Alberta Securities Commission staff implore finance minister to step in

Canadian Press

Thursday, April 28, 2005

EDMONTON (CP) - Alberta Finance Minister Shirley McClellan has been implored by staff at the Alberta Securities Commission to intervene in a controversy that has dogged the regulator for months.

In a two-page letter to the minister dated Monday, 35 current commission employees accuse two senior officials of "bullying and intimidating behaviour." The result, they say, is that the work of the ASC, Canada's second-largest market regulator, is suffering and staff are afraid to co-operate with three investigations currently underway.

The employees complain specifically about the actions of chairman Stephen Sibold, whose contract expires next week, and executive director David Linder. Neither man was available for comment.

Sibold and Linder have denied earlier allegations of misconduct at the ASC, including interference in investigations of Alberta Securities Act violations.

The letter from employees is the latest development in an ongoing controversy that surfaced earlier this year surrounding the commission.

Sibold previously referred to anonymous complainants as "depraved" and "cowardly" and threatened legal action against them. He has also threatened to sue newspapers that reported the allegations.

In the legislature, McClellan had urged employees to come forward with any evidence and assured them there would be no reprisals.

Last week senior ASC administrator Grahame Newton was fired for allegedly failing to co-operate with a KPMG forensic audit of commission computers.

The employees' letter says the firing has spawned greater fears among the 100-member staff and added to the "high stress levels, extreme distrust and paranoia" of recent months.

In addition to the KPMG investigation, the commission has hired consultants to address "human resources problems" discovered in an earlier probe by Calgary lawyer Perry Mack.

Finance Minister pulls a Duh oh!

McClellan says ASC needs to keep her informed

Apr 26 2005
CBC News EDMONTON – Finance Minister Shirley McClellan says someone at the Alberta Securities Commission should have informed her that a senior administrator was going to be fired. McClellan says she needs to know what's going on at the commission because she is the person answering questions about its operations.

A big Opps......now, only now, days later does the Minister demand that the ASC answer to her. A bit of a back hand slap, for their arbitrary firing of a whistle blower. Hmm arbitrary actions is one of the things the ASC insiders are accused of doing........

ASC administrative head dismissed

CBC News

CALGARY – The Alberta Securities Commission's director of administrative services has been fired. Grahame Newton said he was informed of his dismissal in a letter couriered to his home Thursday night, but that the reasons cited are without foundation. He wouldn't elaborate, but said he believes the real reason he was let go is that he was one of the people who spoke out about problems at the commission.

Alberta Liberals attack ASC computer investigation
Globe and Mail
By DAVE EBNER
Friday, April 22, 2005
A forensic computer probe at the Alberta Securities Commission is producing a "fearful and intimidating climate," said Alberta's Liberal Opposition Leader Kevin Taft in the legislature's question period yesterday. Finance Minister Shirley McClellan said Mr. Taft had "a great deal of ignorance" about how the computer probe is being conducted. The ASC said this week that it hired KPMG to assess the security of its computer systems, particularly e-mail. Ms. McClellan said the probe was in no way trying to expose ASC employees who provided anonymous allegations of lax enforcement practices at the commission for in an investigation earlier this year. Those allegation were found to be untrue.

OFFICIAL TERMINATED FOR CAUSE, ASC SAYS
By DAVE EBNER and KATHERINE HARDING
Globe and Mail
Saturday, April 23, 2005
Controversy at the Alberta Securities Commission intensified yesterday with the official announcement that one senior employee at the regulator has been fired. The part-time commissioners who oversee the ASC said in a press release that Grahame Newton, the commission's director of administrative services, was terminated for cause because he did not co-operate with an audit of the ASC's computer systems and admitted to "the interception of several private e-mail communications among ASC staff." A lawyer for Mr. Newton said there were no grounds to terminate for cause, adding that Mr. Newton co-operated fully with the computer audit. The ASC has been rocked by anonymous allegations of lax enforcement and unprofessional behaviour. The computer audit was started as part of an investigation into those allegations, most of which have been declared unfounded by the part-time commissioners.

Alberta Securities Commission says it had just cause to fire employee

April 23, 2005

Investor advocate Diane Urquhart said Friday that the firing of Newton in the midst of the turmoil at the securities commission will not go over well with the investing public. "If in fact someone has had a remedial termination because of an allegation of providing information . . . it's unacceptable and the investing public should be very concerned," she said. Urquhart was skeptical of the timing of the KPMG audit. "It's entirely reasonable for a forensic audit to occur . . . but right in the middle of a human-resources fiasco makes no sense from a management point of view. It's oil on a fire." Newton was fired the same day Alberta Finance Minister Shirley McClellan told the legislature there was no witch hunt underway.

APRIL 1, 2005

The 'top brass' are covering their ass in fine old Troy tradition, must be Tories they deny like Klein. The Alberta Securities Commission proves the need for ONE NATIONAL REGULATOR, like the SEC in the US. Here we have five, count 'em five stock markets across Canada no uniform rules, and no single body responsible for those exchanges.

"Unlike the U.S. and its powerful SEC, there is no national regulator in Canada. It's an international anomaly that dates to the British North America Act of 1867, which divvied up government responsibilities and decreed property a provincial matter. Until the late 1990s, the stock market followed a similar pattern: there were five separate exchanges in Canada. They've consolidated somewhat, but the regulators who oversee the markets haven't managed to move in tandem. Instead, they've been bogged down by an ages-old Canadian political game, that tug of war for power between Ottawa and the provinces." Canada needs a securities watchdog with teeth

The Alberta exchange has had scandals before,Bre-X being the most infamous, fraudulent penny stocks, insider trading, in fact in the 1980's and '90's the Alberta and the Vancouver Stock exchanges were known as the bad boys of the marketplace, promoting boiler room stock operations which were documented in the Financial Post, which is now part of the National Post.

The Infamous Vancouver Stock Exchange

In the novel, the company established by Granger McAdam to exploit his diamond find in Vietnam is listed on the Vancouver Stock Exchange (VSE) which specialised in the financing of junior mining companies all over the world. However it was also one of the most controversial stock exchanges in the world and had been described as the Sodom and Gommorah of modern day financial markets. Its reputation makes Cassie Stewart's task of raising money to finance a diamond mine more difficult.

"Vancouver has all sorts of dodgy companies on the Exchange, cowboys, fly-by-nights."

"This market's not like London. It's pretty wild, with all sorts of unscrupulous operators, lots of manipulation."

Despite her confidence, Cassie discovers that the Vancouver Stock Exchange's notoriety is not exaggerated! Nevertheless the risks she runs in tangling with the sharks in Vancouver are as nothing compared with those that await Eva when she returns to Vietnam ...

N.B. In reality on November 29th, 1999 the Vancouver and Alberta stock exchanges merged to form the Canadian Venture Exchange (CDNX). The reputation of the Alberta Stock Exchange had been greatly damaged by the BRE-X scandal. It is to be hoped that the CDNX will enjoy a much better reputation than its two predecessors!"

With the Klein revolution of getting government out of the business of regulation or oversight, what do you expect in an oil rich speculative market place but speculation. Welcome to the wild west, where anything goes, investor beware you will get screwed and don't go to the sheriff cause he's on the take.

NO FOOLING

ASC issues raised year ago

Letter to government: Former senior enforcement officer outlined concerns

Theresa Tedesco, Chief Business Correspondent

Financial Post
Friday, April 01, 2005

The Alberta government was warned about "significant ethical shortcomings" in the executive offices at the Alberta Securities Commission last year, according to a confidential letter obtained by the Financial Post.

The four-page missive delivered in January, 2004, to Greg Melchin, Alberta's former revenue minister, claimed there was a "two-tier regulatory regime" with one set of rules for "normal" people and another for the "powerful." The letter also alleged senior executives engaged in favouritism among staff, exchanged "erotic" e-mails, and condoned an "open display of sex toys" in the regulator's offices.

The letter, written on Jan. 9, 2004, by Wayne Alford, a former ASC enforcement director, lists four incidents of what he described as "significant ethical failing," and warned that "should they become public knowledge, would certainly bring the administration of Alberta's securities laws into disrepute if not open ridicule."

Mr. Alford, who resigned from the securities watchdog in December, 2003, urged Mr. Melchin to "intercede" and "address the abuses at the ASC."

In one case, Mr. Alford claimed Mr. Sibold decided whether the commission would pursue an enforcement action against a Calgary lawyer, who was also a former law partner of Mr. Sibold, in connection with an insider trading case. In the end, according to Mr. Alford, enforcement staff "received instruction from Sibold and Linder not to pursue this case even though the case was strong and in the opinion of staff, completely sustainable."

Mr. Sibold is also alleged to have become involved in a case involving another Calgary lawyer who had been investigated for providing misleading information to the Toronto Stock Exchange. The unnamed lawyer was also a partner at Mr. Sibold's former law firm in Calgary. Mr. Alford wrote that Messrs. Sibold and Linder instructed enforcement staff to "discontinue enforcement action" against the individual. Instead, the ASC issued a public notice that provided guidelines for lawyers about their obligations when dealing with regulators.

"The enforcement action was terminated notwithstanding staff's opinion that the case was strong and completely sustainable," Mr. Alford wrote.

In the third example, Mr. Alford claimed Mr. Sibold "objected strenuously to staff" who commenced an enforcement action against an unnamed, prominent Canadian businessman for alleged insider trading. After reviewing the file, Mr. Sibold's view, according to the letter, was that "there was no case" against the businessman, and he ordered his staff to "seek a quick and very insignificant settlement to the file." However, ASC enforcement lawyers involved in the case objected in writing to Mr. Sibold. In any event, the businessman subsequently "admitted to all of staff's allegations relating to insider trading."

ASC SCANDAL BACKGROUND

Alberta regulator lashes out at 'depraved' accusers
Globe and Mail Thursday, March 24, 2005

CALGARY -- Stephen Sibold, the embattled chairman of the Alberta Securities Commission, denied allegations of misconduct yesterday, calling his accusers "depraved."

"I challenge these cowardly and depraved individuals who are hiding behind anonymity to come forward, identify themselves and present what they take to be evidence supporting their baseless and false allegations," Mr. Sibold said during a brief press conference held at the ASC offices in Calgary.

He answered no questions about the allegations, on the advice of his lawyer.

In an e-mail to commission staff yesterday morning, Mr. Sibold called the allegations "malicious and vicious," ending the four-paragraph missive by saying he wanted to "prosecute these depraved individuals."

Mr. Sibold announced that he was serving a defamation notice to the National Post and the reporter who authored two stories that appeared in the paper yesterday.

The articles, citing unnamed sources, described the commission as dysfunctional, specifically saying that the regulator's top executives interfered in enforcement cases.

Mr. Sibold, whose term as chairman ends in May, and David Linder, the commission's executive director, were identified by the unnamed sources at the commission, according to the articles.

The accusations have thrown one of Canada's largest securities regulators -- the overseer of the country's oil and gas business -- into disarray.

Mr. Sibold forbade his communications staff to talk about the issue to reporters.

Meanwhile, the Alberta government is continuing its search for a new chairman, but a spokeswoman for the Finance Minister said only one round of interviews has been completed.

Mr. Sibold's five-year term ends in May.

All this is occurring as the province awaits the results of an investigation it requested in January over the ASC's regulatory practices.

The vigour with which the commission has pursued enforcement cases is at the heart of the allegations against Mr. Sibold and Mr. Linder, several securities lawyers said. Some believe the commission hasn't been tough enough.

Mr. Linder, who has been executive director since late 1997, said in a statement that the allegations had "no merit," adding that the commission during his tenure has operated under "the very highest standards of propriety, professionalism, fairness, respect and integrity."

The province's investigation into the allegations began in January when Alberta Finance Minister Shirley McClellan asked the ASC's nine part-time commissioners to look into suggestions of wrongdoing.

Calgary lawyer Perry Mack was hired to interview the complainants, whose accusations were submitted to the part-time commissioners on Feb. 16. On Monday, a report with Mr. Sibold and Mr. Linder's responses to the complaints was submitted.

"There's nothing I can tell you," said Mr. Mack when contacted yesterday.

The reports will likely be part of a package and will be handed to Ms. McClellan soon, but not this week, said Alan Hunter, a partner at Code Hunter LLP in Calgary who is representing the nine commissioners.

Meanwhile, players in Alberta's capital markets await a decision on the Blue Range Resource Corp. scandal, a much-anticipated ruling that has been long delayed and is expected at the end of April. (The ASC alleges that Blue Range executives misled investors over the company's oil and gas production and reserves.)

Mr. Sibold was appointed chairman of the commission in May, 2000, for a five-year term. It was announced last October that his tenure would not be extended.

This week, the Alberta cabinet passed an order-in-council that makes this May the official end of his term.

A previous order-in-council had the end of his term as March 31, even though his contract with the commission had the term's end as May.

Tracy Balash, the spokeswoman for the Finance Minister, said the order was "just correcting an administrative error."

She said she believed that no one had noticed the inconsistency between the original order and the contract until recently.

Asked why the Alberta cabinet would make the order given the accusations against Mr. Sibold, Ms. Balash said: "You can't make decisions on a human resource matter when you're dealing with allegations that haven't been proven."

Mr. Sibold, in his e-mail to the commission staff of about 120, said he was "gratified" that the government "has clarified my term of office."

His last day is May 7.


Securities watchdog turmoil
Alberta commission facing review, lawyer denies claims
Theresa Tedesco
National Post
Wednesday, March 23, 2005

Senior officials at the Alberta Securities Commission interfered with enforcement cases, engaged in favouritism and condoned lewd conduct among staff, according to allegations contained in a confidential report prepared for the regulator's commissioners.

The National Post has learned that an unprecedented review into the conduct of the provincial watchdog's executive ranks, including Stephen Sibold, outgoing chair of the ASC, and David Linder, executive director, revealed a "dysfunctional" agency with questionable management practices, lax governance and a "toxic" atmosphere that contributed to staff departures in recent years.

According to sources, a detailed report prepared by prominent Calgary lawyer Perry Mack for the ASC's board of commissioners is based on claims made by a group of about six whistleblowers and supported in subsequent interviews by about 30 former and current employees. Mr. Mack, who was hired by the ASC's 12-member board of commissioners in January, tabled his findings in mid-February.

The extraordinary probe was ordered by Shirley McClellan, Alberta's Deputy Premier and Finance Minister, after she was advised about "allegations" into the conduct of the ASC's chair and executive director two months ago. According to a one-page letter sent to the ASC's board of commissioners on Jan. 12, Ms. McClellan stated "the allegations appear to be sufficiently serious to justify further investigation." The Finance Minister, who is responsible for the ASC, told the board to report back to her on "what actions the commission intends to take with respect to these complaints."

Among the complaints current and former staff reported to Mr. Mack, sources say, are allegations that executive managers obstructed the work of enforcement staff by directly influencing whether the regulator would pursue cases against certain companies and individuals.

"Every week we had to justify our cases. It was routine that staff was asked to drop cases," said a source familiar with the regulator who asked not to be named for fear of reprisal. "It was made clear that certain people and companies were not to be troubled and were being protected from regulatory activity."

Messrs. Sibold and Linder did not respond to repeated calls or e-mails. However, Alan Hunter, a lawyer representing the ASC's nine part-time commissioners, said yesterday that "the matters are internal to the commission and are highly confidential."

In response to questions sent to Messrs. Sibold and Linder by the National Post, Mr. Hunter said, "Many of your allegations are not accurate."

The allegations raise troubling questions about the credibility of one of Canada's largest securities regulators. The ASC is responsible for governing all publicly traded companies in Alberta, including some of the largest oil and gas companies in Canada. The provincial regulator administers Alberta's securities act, rules and regulations and it also oversees the TSX Venture Exchange.

Sources told the Post that most of the ASC's senior management have revolted against the chair and his lieutenant over what they claim to be an oppressive work environment that has fostered deep tensions and resentment among the rank-and-file.

Since Mr. Mack tabled his report to the ASC board of commissioners almost six weeks ago, sources say a rift has ensued and that the most senior executives are now barely communicating with the rest of the staff.

"The atmosphere has become such that we cannot carry out our business," said a source familiar with the regulator who asked not to be named. Another official described the atmosphere as "untenable" and "poisonous," saying that "there isn't much work getting done these days. People are hunkered down."

According to sources familiar with the complaints, Messrs. Sibold and Linder are said to have fostered a "cowboy mentality" that encouraged favouritism, especially among female members. "The chair acts like a horny teenager," said a source who asked not to be named.

At the same time, sources say senior lawyers, accountants and investigators at the ASC chafed at what they described as inappropriate sexual behaviour in the fourth-floor executive suites, including the frequent circulation of lascivious e-mails on the regulator's computer system and an inflatable sex doll prominently displayed in the offices.

"Skill and intrinsic ability didn't have much to do with how you were evaluated in performance appraisals and remunerated," said a source who filed a complaint with Mr. Mack. "The route to the top was to flatter the chair, wear low-cut blouses and shake what you've got."

Mr. Mack, a well-regarded corporate lawyer, declined to comment for this article, saying, "everything I do or don't do is confidential."

Messrs. Sibold and Linder are said to have responded to the allegations in Mr. Mack's report. The board of commissioners has been meeting this week to decide its next course of action. The group is also required to report back to the Finance Minister.

In the meantime, many of the ASC's 119 employees fear recriminations in the wake of the unprecedented investigation and ensuing scandal. Members of the staff are particularly worried that Messrs. Sibold and Linder are currently conducting performance reviews of all employees, which will determine their salaries and bonuses for fiscal 2005, beginning on April 1.

"Generally, people are feeling harassed," said an insider who asked not to be named. "I think a number of people expect life to become unpleasant."

Beleaguered commission employees blame the board of commissioners for failing to address their concerns, especially because the human resources committee of the board receives all exit interviews of senior managers who quit. Sources say those interviews were littered with serious complaints against the ASC's executive management. "If there had been any kind of oversight, these things wouldn't be happening," said a disgruntled official.

Meanwhile, Finance Ministry officials are currently assessing candidates to replace Mr. Sibold. Last October, the provincial government announced it would not reappoint Mr. Sibold to a second five-year term. He was expected to leave the ASC at the end of March, however, Mr. Sibold's employment contract entitled him to stay on until May 7 and an order-in-council was signed yesterday to accommodate an extension. (His two-year term as chair of the Canadian Securities Administrators ends next week.)

Mr. Linder continues to function as the commission's chief administrative officer, a post he has held since 1997. Unlike Mr. Sibold, he does not sit on the board of commissioners.

© National Post 2005