Investor Advisory Panel deflated..and distanced..

According to a recent IAP update, the IAP’s budget is to remain at $50,000, which means after adjusting for inflation (June 2010 to June 2012 – most recent two year data) the real budget is now $47,779.    

You can often tell a lot about an organisation by its attention to detail: in this case you can tell a lot about the OSC’s attitude to the IAP by its failure to deem it worthy enough to keep even a miserly budget up to date.  I am sure that they have not been so remiss with their own salaries.

Also, while the update states further funds might be made available for certain projects, these are being funnelled through the OSC’s Investor Education fund, and it is difficult to see how you can maintain the necessary level of independence given the Education Fund’s ties to the OSC and its board make up.  This is not an independent body and who is to say whether funds “allocated” are actually at the discretion of the IAP.

Finally, as I suggested in a 5 March post, the OSC’s Office of the Investor is now to be the regulatory liaison for the IAP.   In order to be effective the IAP needs to report directly to the commission, and not to have its message interpreted and allayed by an intermediary.   While the Office of the Secretary was likewise a liaison, it is an altogether different body from what will be a fully functional regulatory office.

Clearly, on an inflation adjusted basis, the IAP is now worth less than it was some 2 years ago when it was set up! 

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