THE CANADIAN PRESS

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TORONTO - Canadians have a new investor-rights organization with a multimillion-dollar budget and a roster of big-name directors.

The Foundation for the Advancement of Investor Rights - FAIR - will be chaired by former Ontario Securities Commission chairman Stanley Beck.

Its executive director and moving spirit is Ermanno Pascutto, a lawyer and former executive director of the OSC who later served as deputy chairman of the Hong Kong Securities and Futures Commission and in recent years has been an international consultant and investor.

The foundation is receiving $3.75 million in start-up funding from the Investment Industry Regulatory Organization of Canada - the combined Market Regulation Services and regulatory arm of the Investment Dealers Association.

The money comes from IIROC's discretionary and restricted funds, derived largely from fines imposed on rule breakers.

In addition to Beck and Pascutto, FAIR's board includes Ed Waitzer, another former OSC chair and a partner in law firm Stikeman Elliott; Stephen Jarislowsky of Montreal investment firm Jarislowsky Fraser; Claude Lamoureux, recently retired head of the Ontario Teachers' Pension Plan; Neil de Gelder, a Vancouver corporate lawyer and investment executive and former executive director of the B.C. Securities Commission; and Whipple Steinkrauss, a former assistant deputy minister in the Ontario Ministry of Consumer and Commercial Relations and director of the Consumer Council of Canada.

"While regulators and government policy makers receive input from industry, listed issuers, financial institutions and their legal and other advisors, too often they have limited input from investors, particularly retail investors who lack the necessary legal, accounting and financial resources that are available to other stakeholders to advance their interests," Pascutto stated.

FAIR Canada aims to make submissions to securities regulators, governments and others; identify emerging issues; and track bad conduct by public companies and market players.

Pacutto said he envisages a staff of half a dozen - eventually including a full-time executive director to replace him - initially focusing on issues such as investor approval of major corporate transactions and earlier disclosure of takeover negotiations.