The Consumers Council of Canada is concerned that the Ontario Securities Commission has declined to give the investor rights group FAIR Canada a place as intervenor at the June 23, 2010 proceeding involving Magna International and the Stronach Trust. At the upcoming proceeding, important questions about market transparency and fair valuation of publicly traded securities are to be considered.
FAIR Canada, a foundation which represents both retail investors and shareholders of listed companies, has stated that the proposed transaction is contrary to both the public interest and the best interests of investors generally, as well as an abuse of the Canadian capital markets.
“The Ontario Securities Commission needs to be more open to hearing investor and public interest concerns about major marketplace events,” said Consumers Council of Canada President Don Mercer. “Clearly, there are significant concerns about this proposed transaction, and a wider hearing of qualified views would benefit the marketplace and all investors.”
In a press release issued late last week, FAIR Canada detailed concerns about the proposed transaction. The OSC has given limited intervenor status to certain pension funds and other institutional shareholders.
“Once again, it appears that the fundamental right of consumers to be heard has been overlooked and investor protection is taking a back seat,” added Mercer.