The Manitoba Securities Commission aims to keep you in the know about how it works with the industry to improve our province’s securities and real estate markets. Click on any of the following highlights from the past year for more information: Cooperating With The Industry Becoming a registrant gets simpler Continuous disclosure obligations harmonized across the country How many exemption orders were issued in 2003/04? What kinds of scams were investigated? Educating All Manitobans Top four reasons Manitobans want investor education Honey, I shrunk the money! Brandon high schooler tests her financial IQ Education continues in Real Estate division Innovative Industry Solutions Powerful tool helps recoup investor losses Continuous Disclosure becomes a priority Public gains easy access to insider reporting information Raise capital without a prospectus while maintaining protection Becoming a registrant gets simpler The Manitoba Securities Commission played a key role in the introduction of the National Registration Database, a secure Internet based system that permits firms and individuals to register via a single electronic application. Created in response to the industry’s needs, this initiative replaces the former paper-based registration system and is widely supported. In the past year, we processed 12,426 securities renewals for individuals and firms, 2,383 commodities renewals for individuals and firms and 5,500 other registrations including terminations, transfers, opening and closing of locations and reactivation of registrations. Continuous disclosure obligations harmonized across the country The Manitoba Securities Commission was involved in developing and implementing National Instrument 51-102 Continuous Disclosure Obligations. This rule, for the first time, harmonized continuous disclosure obligations across the country resulting in greater efficiency. We also helped develop a number of other rules aimed at restoring investor confidence in the securities markets. How many exemption orders were issued in 2003/04? The Manitoba Securities Commission receives applications for exemptions from regulatory requirements in situations where granting an order is not contrary to the public interest. The following chart gives total number of orders issued under The Securities Act in the past year. Orders Issued 2003/04 Exemption Orders 147 Takeover Bid Orders 24 Inside Reporting Orders 39 Financial Reporting Orders 62 Cease Trade Orders 50 Miscellaneous Orders 65 What kinds of scams were investigated? The Manitoba Securities Commission’s investigation department looked into four different versions of a RRSP scam. Funds held within a RRSP account were swapped for shares of a usually worthless small business corporation. Most of the victims received money back in the form of a loan and the rest of the investors were enticed by the promises of high returns. The perpetrators worked through trust companies, mutual fund dealers, and full service brokers. Our undercover operations shut scams down before they get started. This saves costs associated with a full blown investigation once the scam has become established, protects investors before they lose money and keeps clients working with legitimate financial advisers. Top four reasons Manitobans want investor education The Manitoba Securities Commission works towards educating investors to help them make informed investment decisions. A recent survey of Manitobans indicated that investor education was necessary because of these top four reasons: 1) To avoid investment scams 2) To identify acceptable standards of practice by advisers 3) To better understand risk 4) To understand the basics of investing Honey, I shrunk the money! Honey I Shrunk the Money!, a web based marriage money quiz was launched by The Manitoba Securities Commission at the 2004 Wonderful Wedding show. An interactive education tool for young couples about to be married, it features 10 general investment questions covering topics such as choosing an adviser, information about student loans, saving for retirement, raising children and buying a house. Although the contest is closed, you can click here to play the game. Brandon high schooler tests his financial IQ The Manitoba Securities Commission promoted and ran the provincial edition of the Test Your Financial I.Q. essay contest. Participants in the contest, sponsored by the Canadian Securities Administrators, responded to the questions: "If you were to win the $2,500 grand prize, how would you invest it and why (taking into consideration your goals, time horizon, risk, diversification, and return)? Do you think that it is important for young people your age to learn about investing? Why or why not?" Sean Donald, a high school student from Brandon, won a $750 provincial award for his essay entitled Investing in Success. Education continues in Real Estate section Education continues to play a major role in the real estate industry and The Manitoba Securities Commission works closely with the industry to ensure real estate practitioners are abreast of regulatory changes. Our real estate division administered 17 examinations for new home salespeople during the past year. In total, 653 people enrolled in our pre-licensing courses and 1,615 registrants completed six hours of mandatory continuing education entitled Industry and Legal Issues. Powerful tool helps recoup investor losses The Manitoba Securities Commission can order repayment to an investor for losses arising from illegal or improper conduct relating to securities trading, up to $100,000 per claim. This provides investors with an alternative to the civil court system – the first of its kind in Canada – and is a powerful tool for investor protection. In the past year, we received 30 claims from investors totaling $749,760. Continuous Disclosure becomes a priority The Manitoba Securities Commission started its own continuous disclosure review program and is helping develop a national program to ensure that all reporting issuers are subject to ongoing review and the reviews are performed efficiently and consistently. This new focus on continuous disclosure filings reflects the fact that over 90 per cent of all trades take place in the secondary market and the quality and timeliness of information disclosed to capital market participants by reporting issuers is of the utmost importance to the market. We will continue to review prospectus offerings, but the primary focus is on the review of continuous disclosure filings. Public gains easy access to insider reporting information The Canadian Securities Administrators successfully launched the System for Electronic Disclosure by Insiders (SEDI), which provides easy public access to insider reporting information and allows us to more effectively monitor insider reporting activity. We recently began reviewing insider reports and will continue to do so in the coming year. How to raise capital without a prospectus while retaining investor protection The Manitoba Securities Commission adopted the New Exemption Rule, which allows businesses to raise capital without a prospectus while maintaining investor protection. The rule, in place in most Canadian jurisdictions, means businesses can access markets across the country without having to decipher a different sets of rules and is a positive step in coordinating the Canadian securities regulatory system. Some of the above highlights were taken from the 2003-2004 annual report of the Manitoba Securities Commission. Click here to download the annual report in its entirety.

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