Hi All,
I've again taken a trip over to the VSE website for this weeks light reading session ( these things get a real hold on you) and I have dug up the June 18th ,1998 speech by VSE president Michael Johnson to the Vancouver board of trade , having read it I am now filled with confidence about the rules and regulations that have been put in place to protect investors and that the VSE will rigidly enforce these rules to protect the integrity that Mr Johnson seems to think the VSE is the of , I have drawn a few excerpts from the speech thaepitomy t I am sure you will be glad to read ,remember however these are only excerpts that caught my eye and the full speech can be viewed at the VSE website
Here we go then:-
“I first spoke to the Vancouver Board of Trade in January of 1996, soon after I became President of the VSE. At that time I shared with you the challenges we faced and outlined the initiatives we were implementing to bring substantial change to the VSE.
I sought to be very forthright and candid. The perception of the VSE, among both business and the public, was negative to the extreme. There were some who considered as an embarrassment to this city, and questioned the value and economic contribution made by the VSE to the people of British Columbia. Others called for a rulebook so tough that no unsavory business activity could ever taint our market again. The only true consensus was a shared view that change must come…and it must come soon.
This criticism emanated from market problems, abuses and failure by the Exchange to take strong remedial action. While the VSE and its Members may not have agreed with all of the comments and criticisms -- which were often a commentary on how gray was gray -- we were strong in our resolve that the VSE's market must be open and fair.
Abuse could not be tolerated.
I was then, and remain today, absolutely determined to ensure that the VSE is a market that effectively serves investors, listed companies and our Member Firms. The VSE must be operated within a balanced regulatory framework that attracts quality, listed companies, while effectively protecting investors.”
Theres More:-
“
“However, we understand that for many of you the concern has not been the size of the VSE's economic impact, but rather, our market integrity. You want to be proud of both our accomplishments, and how they are accomplished.
Our strategy has been based on a simple equation:
Greater market integrity will improve our reputation and credibility -- and strengthen our competitive position.
If we are competitive, we will gain new listings and financing opportunities.
If we are credible, investor confidence will grow and with it the liquidity of our market.”
And with new business and confident investors, the VSE's market will grow, and all of us will be among the beneficiaries. A year ago we adopted a Mission Statement for the VSE. It is brief, and to the point Our Mission is to be an honest, fair and efficient market for venture capital. Conveyed in this sentence are our purpose, our focus and our values.
And More: -
In many different ways, the VSE has been striving to bring new methods of operation to the Exchange for almost 10 years. In 1990 we became the first exchange to remove the trading floor, where sharp elbows sometimes defined good performance, and introduce fully automated trading.
We remain leaders in this area today.
With the advent of automation we were able to build surveillance tools which could identify market manipulation and improper trading. And with each passing year, the sophistication of our surveillance staff has grown. Today we assist the RCMP and other exchanges in developing similar systems for use across Canada.
And Still More:-
“This is the key. The rules governing the VSE are the strictest in the world, but by themselves they will not make our market honest, fair and efficient. We will only be able to realize our mission through enforcement of our rules in ways that change market behaviour.
The reason why I can stand before you today, and be proud of our progress, is because we are seeing significant and demonstrable changes in behaviour.
The foundation for our progress is that we are diligently, and with a high degree of objectivity, enforcing the rules guiding practices in the VSE's market.
Let's be frank, this is tough medicine, and it has required courage and conviction from the Exchange and its Member Firms. Applying punishment is never easy, but it is necessary.
The VSE has a disciplinary process that is driven by a committee of Public and Member Firm Governors. It acts like a district attorney's office, undertaking case-by-case reviews and acting, when appropriate, with determination.
We have banished RRs from our market, some for life. We have levied heavy fines on Member Firms and their employees. We have halted trading, suspended and de-listed companies for violation of their responsibilities to investors. We have audited compliance practices and we routinely confirmed the accuracy of information being disclosed. However, we must recognize that no set of rules will ever be perfect and nosurveillance will be foolproof. Public markets are always vulnerable to abuse. But thishaving been said, we will be steadfast in our efforts to defend our market and actquickly against anyone who seeks to abuse it”
Yeah Right Still More
“To be candid, our largest problems today are within this room, this city and this province. We are still seen by some as a source of embarrassment. Our performance today tends to be admired much more from afar, than in our own community.Like you, we are working to build Vancouver and British Columbia with integrity and determination. We are doing a good job, and people need to know that. The past perceptions are not our present reality…or part of our future.
I invite you to get to know us better by visiting our Web site, reviewing our publications, and calling our customer service numbers.
I ask you to become our ambassadors, just as we are your ambassadors when we travel across Canada and throughout the world seeking to bring business to this city. Do notlet our critics go unanswered, with vision blurred by events of years ago.I ask you to stand up and defend the VSE.”
Now if you don't mind Mike I'll add a few words of my own, that was a damn finespeech it would inspire most with confidence in the fact that the VSE is defending ourinterests as investors and is acting promptly on our behalf , however there is just onelittle thing niggling at my mind and that IS ....................................................
WHY ,WHEN YOU HAVE BEEN PRESENTED WITH A SET OF FIGURES
FROM A FORENSIC AUDIT ,CARRIED OUT BY A FIRM OF ACCOUNTANTS
, DOES IT TAKE OVER SIX MONTHS TO CONFIRM OR DENY THESE TRADES
(ALREADY HIGHLIGHTED IN THE REPORT) BY USING THE
COMPUTERISED TRADING RECORDS AND TOOLS THAT YOU SAY ARE
AVAILABLE TO YOUR SURVEILLANCE UNIT .AND TO TAKE THE
APPROPRIATE ACTIONS IF THE ALLEGATIONS IN THE FORENSIC AUDIT
OF GLOBAL SECURITIES DEALINGS IN STARPOINT STOCK ARE PROVED
CORRECT OR INCORRECT
If you don't mind me saying so Mike I suggest you give it your urgent attention before
both you and the speech become something of a joke, BRAVE WORDS REQUIRE BRAVER ACTIONS TO MAKE THEM WORTH ANYTHING
Regards
John
PS I would appreciate an answer because to quote you in this speech you said:-
"Do notlet our critics go unanswered, with vision blurred by events of years ago.I ask you to stand up and defend the VSE.” |
