OSC to review recent IPOs amid complaints that banks use leverage as lenders to win capital markets business

OSC to review recent IPOs amid complaints that banks use leverage as lenders to win capital markets business
© Provided by Financial Post The Ontario Securities Commission is digging into the issue at the request of Ontario finance minister Peter Bethlenfalvy.

The Ontario Securities Commission is probing “potential anti-competitive practices” related to the “tied” selling of commercial lending and capital market services, and will be requesting additional disclosure related to a selection of recent IPOs.

The practice of tied selling, generally prohibited by banks, is defined by Canada’s largest capital markets regulator to include situations in which “a commercial lender requires a client to retain the services of an affiliated investment dealer for their capital raising and advisory needs, as a condition in a commercial lending transaction.”

A wide-ranging task force report on modernizing Canada’s capital markets, completed in January, revealed longstanding complaints from independent dealers that they had difficulty competing in mergers and acquisitions, and other capital markets activity, because companies feared losing access to commercial loans if they did not do business with the big banks.

The OSC is digging into the issue at the request of Ontario finance minister Peter Bethlenfalvy, who also directed the regulator to look into more recent complaints about the banks halting or restricting sales of third-party investment products.

Bethlenfalvy raised both issues in a letter to sent to OSC chair and chief executive Grant Vingoe last week.  

Kicking off its consultation on the issues Tuesday, the capital markets watchdog said it would be digging into past initial public offerings and seeking additional information through its powers governing continuous disclosure. The regulator said it would also take submissions related to tied selling — including supporting analysis — from issuers, dealers, market participants, investors and other stakeholders through Jan. 10.

Its examination into the supply of third-party investment products available on the shelves of the big banks will take the form of “focused” compliance reviews. The OSC also plans to contact some of the major firms during the week of Dec. 6 and conduct the reviews over the following month to determine how they have addressed conflicts of interest in the distribution of proprietary investment products, and examine “the composition of their product shelves.”

In his letter to the OSC’s Vingoe, Bethlenfalvy noted that some financial institutions have suggested the restriction of third-party investment products was in response to new client-focused reforms, which require advisors to have more knowledge about the products they sell.

  • Bank of Nova Scotia hikes dividend as profit beats expectations
  • Canadian banks expected to unleash ‘dividend growth tsunami’ this week
  • Jamie Dimon says he regrets quip that JPMorgan will outlast China Communist Party

The finance minister said a narrowing of investment products offered to investors “would run counter to the underlying intent” of the new rules, which is “to mitigate conflicts of interest and ensure that investors have access to the products that best serve their needs.”

Bethlenfalvy wrote that he was aware the OSC had already contacted the financial institutions and requested information to better understand the changes, but called this “a necessary first step in understanding how to best protect the interests of investors and support consumer choice.”

The Canadian Bankers Association, an industry group, said in a statement that the banks comply with the law against tied selling.

“Banks in Canada are federally regulated and Section 459.1 of the Bank Act prohibits banks from practicing coercive tied selling,” the CBA said in the statement. “Indeed, banks have complied with the law for many years by not practicing coercive tied selling and, as part of their longstanding commitment to uphold the law, they provide their employees with training on acceptable sales practices.”

The OSC will report its findings, as well as potential recommendations, to the finance minister by Feb. 28, 2022.

• Email: bshecter@nationalpost.com | Twitter: BatPost

News Related

OTHER NEWS

How to spot a toxic friendship and when you should let go

© Provided by Woman&Home woman comforting her friend illustration All relationships—platonic and romantic—require give and take and can be difficult to navigate. But when a friend takes without giving and ... Read more »

David De Gea backs "massive" Man Utd moment to kickstart season and top four challenge

David De Gea has backed Manchester United to kick on after Marcus Rashford’s last-gasp strike saw them edge past West Ham in a 1-0 win at Old Trafford on Saturday. ... Read more »

Jewelry trends 2022—the prettiest pieces to add to your collection

Discovering and using the latest jewelry trends is an easy way to update your everyday looks. Accessories allow you to be more experimental with your outfits and to show off ... Read more »

Riot cops blast Covid protesters with water cannons as wild crowds smash windows & throw projectiles in Belgium

BELGIAN riot cops today blasted Covid protesters with water cannons and tear gas as wild crowds descended on the country's capital. Officers tried to control the mass demonstrations in Brussels ... Read more »

Sue Gray probe likely to make judgments on whether No 10 parties were inappropriate

© Provided by The i British civil servant Sue Gray (Courtesy of GOV.UK/Handout via REUTERS) The senior official who holds the fate of Boris Johnson’s premiership in her hands is ... Read more »

Ukraine's ambassador calls for British soldiers to join their troops in the event of a Russian invasion

© Sean Gallup Many civilians have enrolled in Ukraine’s military reserve program – Sean Gallup Ukraine’s Ambassador to the UK has called for British soldiers to join their troops in ... Read more »

Newt Gingrich predicts Jan 6 committee members could be jailed if GOP takes back Congress

© Fox News Newt Gingrich predicted that Jan 6 Committee members will be jailed if the GOP takes Congress – Fox News Former Republican House Speaker Newt Gingrich has predicted ... Read more »

Nursery panics parents by accidentally sending out secret list of its most worrying mistakes with children

A nursery caused panic after accidentally sharing an internal letter with parents where staff listed its most worrying mistakes including a near escape, and a boy getting stuck in the ... Read more »

Ilia Topuria releases statement on UFC 270 withdrawal: 'I will come back stronger than ever'

Ilia Topuria thinks he just wasn’t meant to compete at UFC 270. © Provided by MMAJunkie The rising UFC featherweight contender was pulled from Saturday’s pay-per-view event just hours before ... Read more »

'My husband wants to be in "lockdown" all summer - but I feel like I've suffered enough'

When my partner Mike* told me he wanted to be in his own “lockdown” over the summer holidays, I really thought he was joking. He’s always been a bit of ... Read more »

Warning of rapid test 'Hunger Games' as millions eligible for free kits

More than six million Australians will be able to access free rapid tests from today but experts are warning supply shortages could prompt a “Hunger Games” between chemists. The warning ... Read more »

Kanye West's New Girlfriend Julia Fox Claps Back At Claims She's Only Dating Him For Fame

© Provided by CinemaBlend screenshots of Kanye West and Julia Fox The dating life of rapper Kanye West has created some confusion as of late. One minute he’s making serious ... Read more »

The Green Planet: The BBC's own fight for survival looms large

Here we go again: soaring strings, rhapsodic bursts of colour, the fireworks of the natural world glittering in mesmerising detail – it’s the latest episode of The Green Planet. It ... Read more »

Boeing warns pilots of possible worst-case 5G interference scenarios

© Provided by The Times of India MUMBAI: Aircraft manufacturer Boeing recently issued airline-specific bulletins alerting pilots to a long list of possible problems the cockpit could be besieged with ... Read more »

Ready for settlement talks with govt but our fight in foreign courts to go on: Devas

© Provided by The Times of India Days after the Supreme Court ordered the winding up of Bengaluru-based startup Devas Multimedia, promoters of the company, which had been fighting a ... Read more »

Power plants staring at fresh coal shortage due to ‘bias'

© Provided by The Times of India NEW DELHI: Coal shortage at power plants may appear to be over for the time being but the spectre of another crisis is ... Read more »

Stunned British student sat ALONE on BA flight from London to Orlando

A college student returning for a new semester claims he was the only ticketed passenger on an eight-hour flight from London to Orlando, Florida. Kai Forsyth, who is from Derby ... Read more »

Labour plotting ‘eye-watering tax increases’ as Tories warn £30bn plans will cripple incomes

© Eddie Mulholland for The Telegraph Shadow Chancellor Rachel Reeves pictured with Sir Keir Starmer – Eddie Mulholland for The Telegraph Labour has been accused of plotting “eye-watering” tax rises ... Read more »

2022: Lindiwe Sisulu's year of campaigning dangerously

Whatever the short-term cost Minister Lindiwe Sisulu may bear for her attack on the Constitution and the judiciary, she and her supporters can claim what could be an important victory: ... Read more »

Gauteng NGOs taking on mental healthcare users were overcrowded, inquest told

On Friday, former deputy director of the Gauteng Department of Health Mental Health Directorate, Hendricka Jacobus, was examined by advocate Rendani Munzhelele, legal counsel for Daphne Ndhlovu, who was a ... Read more »

Too much rain means no grain: Farmers and industry watchers look skyward for a sunny reprieve

On the one hand, dams that just a few years ago were almost running on empty are now filled to the brim, and much of the South African veld is ... Read more »

The SA Gender Commission's statement against mandatory vaccinations is irresponsible and misleading

Scientists call on the Gender Commission to withdraw its statement, engage with the relevant institutions, societies and experts and replace it with one that truly addresses Covid-19 reproductive health concerns. ... Read more »

Antonio Conte rages at "incredible" decision to disallow Harry Kane goal

Antonio Conte slammed the “incredible” decision to disallow Harry Kane’s “goal” as Tottenham suffered more Chelsea misery. Conte was fuming after seeing Kane’s first half effort ruled out by referee ... Read more »

“From what I've heard”: Keith Downie drops big NUFC transfer update on 6 ft 4 "complete player"

© GiveMeSport Newcastle United manager Eddie Howe in Premier League action Fenerbahce defender Attila Szalai is probably ‘an option’ for Newcastle United even if he is not their ‘number one’ ... Read more »

Man City boost as Euro giants rule themselves out of race for quality midfield signing

© PA Images Frenkie de Jong battles Luka Modric during El Clasico in October 2021 Manchester City have been given a boost in their hopes of capturing Dutch midfielder Frenkie ... Read more »

Silvio Berlusconi ditches presidency campaign as 'Italy needs unity'

© Alessandra Tarantino Silvio Berlusconi Silvio Berlusconi has finally ditched an unlikely bid for the Italian presidency, with the billionaire media owner insisting he did have the votes to win ... Read more »

Blackpink’s Rosé Does Skater Style in Adidas Puffer, Sweatpants & White Sneakers

Rosé, one-fourth of K-pop girl group Blackpink, showed her sporty side in a new photo dump. The “On The Ground” singer shared a series of photos on Instagram, where she ... Read more »

Everton poised for talks with Vitor Pereira over vacant manager's job

© GETTY IMAGES Everton set for talks with Vitor Pereira about becoming club’s new manager – GETTY IMAGES Everton are planning to interview Vitor Pereira as they continue their search ... Read more »

Rams bar fans in San Francisco, elsewhere from buying NFC championship game tickets

When the Green Bay Packers lost on Saturday, the Los Angeles Rams’ sales department was ready.  Saturday’s result ensured that the winner of Sunday’s NFC divisional round playoff game between ... Read more »

Ben Foden voted off Dancing on Ice

© Bang Showbiz Ben Foden has left the ITV show Ben Foden has been voted off ‘Dancing on Ice’. The 36-year-old sports star has lost in a skate-off against Ria ... Read more »

Best keyboards in 2022: Give your typing the keyboard it deserves

Choosing the best keyboard for your setup can be tough. Not only are there a ton of options, but there is also a multitude of different keyboard types. From mechanical ... Read more »

The Best Hydroponic Gardens Mean Never Killing Another Plant Again

Hydroponic gardening may sound fancy and complicated, but it’s actually its simplicity that makes it so popular with at-home gardeners. Unlike the traditional style of gardening which you’re probably more ... Read more »

Connecticut man charged following racist comment, tirade at smoothie shop

A Connecticut man has been charged with intimidation based on bigotry or bias, breach of peace, and criminal trespassing after allegedly hurling a drink and racist insults at employees in ... Read more »

The Best Scalp Massagers To Help Promote Growth and Keep Your Hair Flake-Free

If you’ve never used a scalp massager brush when washing your hair, it may be time for you to start. Not only are they a great self-care tool for relaxation, ... Read more »

Rupert Grint zeigt seine süsse Tochter auf dem Filmset

© imago images/UPI Photo Rupert Grint im Frühling 2020 zum ersten Mal Vater geworden. Schauspieler Rupert Grint veröffentlicht nach über einem Jahr zum ersten Mal wieder ein Foto von seiner ... Read more »

Sam Frost's ex-boyfriend reveals reason for split

Sam Frost’s ex-boyfriend Jay Bruno has revealed the true reason behind their sudden split, admitting the couple “just didn’t work”. The former Home and Away star and the personal trainer/drummer ... Read more »

Motorious Explores The Chevy Corvette

Chevrolet Corvette – America’s most iconic sports cars. At the time, the 1953 Chevrolet Corvette was little more than a show car for Motorama. However, initial reactions from the media ... Read more »

Garrett Hedlund arrested for public intoxication in Tennessee following Emma Roberts split, report says

© Noam Galai/ Getty Images Garrett Hedlund was reportedly arrested on Saturday night in Tennessee. Noam Galai/ Getty Images Garrett Hedlund was arrested for public intoxication on Saturday night, TMZ ... Read more »

Antonio Rudiger the latest victim on weekend of shame for Premier League after fan disorder

© Provided by The Telegraph Antonio Rüdiger – Antonio Rudiger the latest victim on weekend of shame as fan disorder overshadows Premier League Antonio Rüdiger, the Chelsea defender, became the ... Read more »

Langer digs in for long haul, players silent – CA needs to make up its mind

Justin Langer was renowned as someone who was not fashionable but got results by digging in and proving hard to remove. That was as a batter. As a coach it ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic