PMAC Submission – CSA consultation on oversight framework and binding authority for OBSI
PMAC responded to the CSA’s revised proposal to provide binding authority to OBSI, and to develop an oversight framework for OBSI. We supported the changes made to the binding decision-making framework, including the addition of a process to have independent decision-makers review OBSI decisions over a $75,000 threshold at the parties’ request, before the decision becomes binding. We urged the CSA and OBSI to make voluntary mediation services available to the parties as an alternative dispute resolution process, where no significant power imbalance exists between the parties.
We disagree with the prescriptive oversight framework proposed by the CSA; we are concerned that this will weaken OBSI’s independence and add administrative burden and cost to OBSI, without a corresponding investor protection or stakeholder fairness outcome. We also recommended that a two-year limitation period be implemented for complaints to OBSI, in place of the current six-year limitation period. Most provinces have adopted a basic limitation period of two years. This is designed to ensure fairness by encouraging timely action and preventing disputes from being raised years after evidence has been lost or memories have faded.
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