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The impact of corporate scams and securities regulations on investments in Canada are examined. The Ontario Securities Commission for example is criticized for the low number of cases it has heard regarding inappropriate financial reporting or accounting. Corporate scams in Canada include the case against Livent and against YBM Magnex International.

The acquittal of former Bre-X Minerals chief geologist and vice-chairman John Felderhof on charges of fraud and insider trading had investors thinking whether Canada can competently deal with fraud cases. The author commented on the way the Ontario Securities Commission seemed to be handling these kinds of cases, saying that officials of several other companies in the past had faced similar issues, and the result was the same. The judge handling the case believed that Felderhof had acted with diligence and that those involved with Bre-X were reputable persons.

Ontario Securities Commission feels that a review of the hedge fund industry will include a look into the regulatory status of principal-protected notes (PPNs). PPNs allow retail investors access to hedge funds. It is difficult for investors to find out how much they are actually paying in fees on PPNs.