Any of you older investors remember the time when regulatory bodies were governed by the different Provinces of  Canada? Like the OSC, (Ontario Securities Commission ), BCSC, (British Columbia Securities Commission ), QSC, (Quebec Securities Commission), etc.

Well the Investment Dealers Association proposed to the governments that they could self regulate the industry. So the provincial agencies that were protecting the interests of investors, absolved their responsibilities and let the Investment Dealers form a self regulating body.  The result was what we now have, namely IIROC.

In reality it is as though you have wolves guarding the sheep. How convenient? So now when a financing is done way below the latest price of a stock, there is no objection from IIROC, the self regulating body, because it is to the Broker Dealers advantage to have a huge margin of 100% guaranteed profits. They do their dirty work with the company, have plenty of time of selling shares by using Anonymous and then bam the share holders get a shock of their lives seeing an announcement of a private placement at a huge discount.

Before, and even now in the small print when they announce a financing it says that it must be approved by the exchange where the stock is trading. Well for many years, these exchanges never refused a proposed financing at huge discounts to market. You can blame the Self regulating authority, (the wolves who are supposed to protect the interests of investors), IIROC.