Paper on the regulator- corporation complex

Accommodating Power: The “Common Sense” of Regulators : Laureen Snider , Queen's U.

“ The OSC seems not to have been captured by the sector it regulates but handed over to them” Andrews, 2006: 86 “

This paper examines the perspectives, strategies and practical `common sense' of those charged with regulating and enforcing securities laws in the post-Enron era. It argues that crackdown periods following stock market disasters disrupt dominant patterns of governance and empower regulators to proactively enforce laws against powerful financial actors. The article shows how officials negotiate their regulatory terrain and accommodate the economic and social capital of the `stakeholders' they are charged with regulating outside crisis periods and how they re-interpret and redefine their mission in response to political, economic and ideological change. Empirically the article is based on 21 interviews with regulators and enforcement staff in securities commissions and law enforcement, and on the discourses and directives found in key regulatory documents Read the article here 

How to assess mutual fund ads

We wrote this piece over 10 years ago. The recent scuffle over investment awards in sales communications prompted us to republish the paper. The key point to remember is that these ads are sales pitches. Canadian Securities regulators help unsuspecting retail investors understand the limitations of past-performance data by requiring fund ads touting historical returns to include a warning that states “The indicated rates of return are historical annual compounded total returns including changes in unit or share value and reinvestment of all distributions and dividends and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. ” .

The Annual investment awards have one basic purpose- to market the "winners". Current research shows that most funds under perform their benchmarks over the longer term. The awards have little economic or information value for Main Street but do have potential sales value for Bay Street.They have the same value as "Free lunch" seminars at best. BE AWARE. Here's the article: Analyze fund ads for clues 

 

Folklore of Finance: How Beliefs and Behaviors Sabotage Success in the Investment Management Industry

To better understand the flawed beliefs and behaviors within the industry, what State Street describe as “folklore,” they examined the views of thousands of investors, investment providers, government officials and regulators across 19 countries over 18 months. What they learned is that true success lies beyond what the industry previously accepted. It includes not only producing alpha - perhaps more importantly, it also requires helping investors achieve their long-term goals. They’ve outlined concrete steps that the industry must take to develop a new “Folklore of Finance.” Explore the full report

Subject: Closet Indexing:Your Mutual Fund May Be Too Lazy

It is well documented that on average active mutual fund tends to underperform the market. However, there is now a further issue with mutual funds according to the recent research of Antti Petajisto formerly of Yale University and now at Blackrock.The problem is this. The point of owning a mutual fund is paying a team of analysts to pick stocks on your behalf, but according to this research, a significant group of mutual funds are no more than “closet indexers”, closer to following the market than trying to beat it. This matters because not only are you paying a high fee, you aren’t getting what you might expect. It’s a little like paying a premium for Gucci loafers and then discovering that the shoes you received are remarkably similar to a pair from Walmart.

http://www.forbes.com/sites/simonmoore/2014/08/02/your-mutual-fund-may-be-too-lazy/