Creation of the Canadian Securities Regulatory Authority (CSRA) - The MÉDAC
wants to go to the Supreme Court of Canada on behalf of the Small Investors

MONTREAL, June 16 /CNW Telbec/ - The MÉDAC announces its intention of seeking leave to intervene before the Supreme Court of Canada to provide a voice for small investors with respect to the question which the Court has been asked by the federal government: "Does the Proposed Canadian Securities Act fall under the jurisdiction of the Parliament of Canada?"

In light of its mission of defending shareholders, the MÉDAC wishes to express its vivid opposition to the creation of the Canadian Securities Regulatory Authority (CSRA) as being an intrusion into competent provincial jurisdiction which would deprive small investors and businesses in each province of a monitoring system that is efficient and sensitive to their specific problems and concerns. The following should be kept in mind:

    
    - The OECD ranks Canada 2th in regard of the quality of his securities
      regulation;
    - The World Bank ranks Canada 5th insofar as investor protection is
      concerned;
    - A facilitating mechanism for institutions thanks to the passport system
      of "mutual recognition" and a pronounced harmonization of the
      regulations;
    - The existence of strong local initiatives which respect the
      distinctiveness of the markets and which encourage the development of
      strong financial markets in Canada;
    - The presence at a local level of a critical mass of dedicated
      individuals possessing unique skills which assures investors quality
      service in respect of local issues.
    

In short, the new proposed system will deprive Canadian citizens of benefits realized by a harmonious and efficient coexistence of the various regulatory organizations and infringes upon the Constitution of Canada which assures all Canadians the highest quality of securities regulations while taking into account the distinctiveness of the provinces which form the country.

The legal debate on the constitutionality of the federal government's project must absolutely be linked to the perspective of the MÉDAC, the organization in Canada most active in the defence of minority shareholders' rights, by bringing in shareholders' propositions, memorandums, research and financial education. As stated by the President, Mr. Claude Béland: "Since 1997, we have contributed to the improvement of the good governance of our organizations and have defended with success the rights of shareholders. We cannot remain silent in face of such a project which threatens their rights and their protection. It is essential that the small investors are heard."

For further information: M. Claude Béland, President, Mouvement d'Éducation et de Défense des Actionnaires (MÉDAC), 1-514-286-1155, [email protected]; Me Guy Paquette, Partner Paquette Gadler Inc., Attorneys for MÉDAC, 1-514-985-7071, [email protected]