Selected references – II. ONLINE INVESTING REGULATION

Australia

• Regulators and Investor Association sites
• Publications and Reports
• Introduction and Background
• Electronic Prospectuses and Offer Documents
• Misleading and Deceptive Conduct and Market Abuse
• Online Investing Discussion Sites
• Customer Relations, Calculators and Suitability

United States

• Introduction, Background and Major Works
• Online Investing and Securities Market Structure
• Electronic Prospectuses and Offer Documents
• Online Fraud and Market Abuse
• Customer Relations and Suitability

United Kingdom

• Regulator and Investor Association Websites
• Financial Data and Newsletters and Financial Analysis and Trading
• Regulations, Publications and Reports

Canada

• Legislation
• Regulator and Industry Association Websites
• Regulations, Publications and Reports

Australia

Regulators and Investor Association sites

• ASIC – for investment information generally
  http://www.asic.gov.au/
• ASIC’s FIDO site – for financial consumers
  http://www.fido.asic.gov.au/fido/fido.nsf
• ASX – for market information
  http://www.asx.com.au/
• Australian Shareholders Association - a shareholders information and advocacy body
  http://www.asa.asn.au/
• Australian Consumers Association – a consumers information and advocacy body
  http://www.choice.com.au/
• Financial Industry Complaints Service Limited – a dispute resolution body for financial consumers
  http://www.fics.asn.au/

Publications and Reports

Introduction and Background

• ASIC, Educating Financial Consumers, Discussion Paper, July 2000
• ASIC, Internet and e-commerce initiatives, Information Sheet, June 2001
• Australian Securities and Investment Commission, FSRB Policy Proposal Paper No 1, Licensing: The scope of the licensing regime: Financial product advice and dealing, 2001, passim and in particular 39
  http://asic.gov.au/asic/pdflib.nsf/LookupByFileName/fsr1advdeal.pdf
  /$file/fsr1advdeal.pdf
• ASIC, Policy Statement 164, Licensing: Organisational Capacities, (2002)
  http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ps164.pdf/$file/ps164.pdf
• Kingsford Smith, D (Ed) ., ‘The Cyber-Corporation and Online Investing’ (2001) 19(8) Co & Sec LJ, 490, special issue on online investing in Australia.
• Segal, J., ‘Managing the Transition to Cyberworld’, 19(8) Co & Sec LJ (2001) 519-531
  http://www.fido.asic.gov.au/asic/asic.nsf/lkuppdf/
  ASIC+PDFW?opendocument&key=IBA-20-11-00_speech.pdf
• Kingsford Smith, D. & Williamson, K. (2004) ‘How do online investors seek information? Theory, method and preliminary findings’, Journal of Information, Law and Technology. Issue 2.
  http://www2.warwick.ac.uk/fac/soc/law/elj/jilt/2004_2/kingsford-smithandwilliamson/

Electronic Prospectuses and Offer Documents

• Boros, E., Multimedia Prospectuses and Other Offer Documents, Issues Paper published by Australian Securities and Investments Commission and Centre for Corporate Law and Securities Regulation (December 1999)
  http://cclsr.law.unimelb.edu.au/research-papers/multimedia.pdf
• ASIC, Policy Statement 107, Electronic Prospectuses, (2000)
  http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ps107.pdf/$file/ps107.pdf
• ASIC, Policy Statement 150, Electronic Applications and Dealer Personalised Applications, (2000)
  http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/ps150.pdf/$file/ps150.pdf

Misleading and Deceptive Conduct and Market Abuse

• Phillips, T., Avoiding Share Scams in Cyberspace, 20 September 1999
  http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/
  conference.pdf/$file/conference.pdf
• Longo, J., Cyber Enforcement in the Financial Services Sector, address to the ACCC’s Global Commerce Conference (9 November 1998)
  http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/jlspeaks.pdf/$file/jlspeaks.pdf
• ASIC Media Release 01/66, Two Years Jail – Suspended – for Internet Spammer, 22 May 2001. R v Hourmouzis (Unreported, Victorian County Court, Stott, J. October 2000)
  http://www.asic.gov.au/asic/asic_pub.nsf/byheadline/
  01%2F166+Two+years+jail+-+suspended+-+for+internet+spammer?opendocument
• ASIC Media Release 02/218, International Cold Calling Investment Scams Report, 19 June 2002
  http://www.asic.gov.au/fido/fido.nsf/byheadline/
  02%2F218+International+cold+calling+investment+scams+report?openDocument
  OR
  http://www.asic.gov.au/asic/asic_pub.nsf/byheadline/
  02%2F218+International+cold+calling+investment+scams+report?openDocument
• ASIC Media Release 04/014, Playing Games but Losing real Money: it’s the PITS, 21 January 2004
  http://www.asic.gov.au/asic/asic_pub.nsf/byheadline/
  04-014+Playing+games,+but+losing+real+money:++it's+the+PITS?openDocument
• ASIC Media Release 01/348, ASIC Gull Winner Shuts down Spam Scam, 27 September 2001
  http://www.asic.gov.au/asic/asic_pub.nsf/byheadline/
  01%2F348+ASIC+Gull+winner+shuts+down+spam+scam?opendocument
• ASIC Media Release 04-209, Scamseek spider catches web scams and schemes, 28 June 2004
  http://www.asic.gov.au/fido/fido.nsf/print/04-
  209+Scamseek+spider+catches+web+scams+and+schemes?opendocument
• Patrick, Jon, 'The Scamseek Project – Text mining for Financial Scams on the Internet', Sydney Language Technology Research Group, School of Information Technologies,University of Sydney, and Capital Markets Co-operative Research Centre, 2 March 2005
  http://www.cs.usyd.edu.au/~lkmrl/Scamseek-Project-data-mining-conf-v0.pdf
• Gabrielle Costa, 'ASIC automates internet scam scan', The Age, 29 June 2004
  http://www.theage.com.au/articles/2004/06/28/1088392599730.html
• AAP, 'Money to be made online, but watch for icebergs', The Australian, 13 September 2005
  http://australianit.news.com.au/articles/0,7204,16578078%5E15318%5E%5Enbv%5E15306,00.html

Online Investing Discussion Sites

• ASIC Interim Policy Statement – Exposure Draft, Internet Discussion Sites, IPS 162, 15 August 2000
  http://www.cpd.com.au/asic/ps/ps162.pdf

Customer Relations, Calculators and Suitability

• ASIC Information Release 04-17, ASIC Provides Guidance on Superannuation Calculators, 4 May 2004
  http://www.asic.gov.au/asic/asic_pub.nsf/byheadline/
  IR+04-17+ASIC+provides+guidance+on+superannuation+calculators?openDocument

United States

• Securities Exchange Commission, Washington DC, USA:
  http://www.sec.gov/
• National Association of Securities Dealers – information about investing including online http://www.nasd.com/web/idcplg?IdcService=SS_GET_PAGE&nodeId=5
• Cyber-securities Law Institute, Faculty of Law, University of Toledo, USA:
  http://law.utoledo.edu/Cybersecurities/
• John Reed Stark, Chief, the Office of Internet Enforcement, Securities and Exchange Commission, Washington DC, USA:
  http://www.johnreedstark.com/

Introduction, Background and Major Works

• Friedman, H.M., Securities Regulation in Cyberspace, (2004 Aspen)
• Olsen, J.F. & H.L. Pitt, Securities in the Electronic Age: A Practical Guide to the Law and Regulation (Glasser Legal Works, 2000)
• ‘Online Investing and the Online Consumer: State and Decentred Regulatory Responses’ (2004) 26:3 Law & Policy. Special issue of the journal on online investing, with international contributors.

Online Investing and Securities Market Structure

• Langevoort, D., ‘Information Technology and the Structure of Securities Regulation’, 98 Harvard Law Review 747–804 (1985).
• Coffee Jr, J., ‘Brave New World? The Impact(s) of the Internet on Modern Securities Regulation’, (1997) 52 The Business Lawyer 1195.
• Bradley, C., Technology, Demutualisation and Stock Exchanges: the Case for Co-regulation
  http://papers.ssrn.com/sol3/papers.cfm?abstract_id=312157
• Bradley, C., Disorderly Conduct: Day Traders and the Ideology of "Fair and Orderly Markets, 26 J. Corp. L. 63 (2000)
  http://personal.law.miami.edu/~cbradley/articles/DayTraders.pdf

Electronic Prospectuses and Offer Documents

• Securities and Exchange Commission, ‘Use of Electronic Media for Delivery Purposes’, SEC Release No 33-7233(Oct 6 1995)
  http://www.sec.gov/rules/proposed/33-7233.txt
• Securities and Exchange Commission, ‘Use of Electronic Media by Broker Dealers, Transfer Agents, and Investment Advisers for Delivery of Information’, SEC Release No 33-7288 (May 9 1996)
  http://www.sec.gov/rules/concept/33-7288.txt
• Securities and Exchange Commission, ‘Securities Offering Reform; Proposed Rule’, 17 CFR Parts 228, 229 et el (17 November, 2004)
  http://www.sec.gov/rules/proposed/33-8501.htm
• Donnelley, R.R., Multimedia Disclosure,
  http://www.realcorporatelawyer.com/faqs/multimedia.html
• Romanek, B. and D. Lee, ‘E-Communication to Shareholders Outside the Offering Process’, 2005 Toledo Law Review, forthcoming

Online Fraud and Market Abuse

• Walker, R.H. & D.M. Levine ‘“You’ve Got Jail”: Current Trends in Civil and Criminal Enforcement of Internet Securities Fraud’, 38 Am.Crim.L.Rev 405 (2001)
  http://www.bowne.com/newsletters/newsletter.asp?storyID=313
• Cella, J. & J.R. Stark, ‘SEC Enforcement and the Internet: Meeting the Challenge of the Next Millennium – A Program for the Eagle and the Internet’ (1997) 52 The Business Lawyer 815-849
  http://www.johnreedstark.com/ClassMaterials/
  StarkArticles/enforcenet%20first.htm
• Stark, J.R. and C.E. Kurr, ‘Using the SEC’s Statutory Weaponry to Combat Spam’ 2005 Toledo Law Review, forthcoming.

Customer Relations and Suitability

• Liblin, N. & J. Wrona, ‘The Securities Industry and the Internet: A Suitable Match?’ 2001 Colum.Bus. L.Rev 601-681 at 654-5
• NASD notice to Members 01-23 ‘Suitability Rule and Online Communications’, 03/19/2001
  http://www.nasd.com/web/idcplg?IdcService=
  SS_GET_PAGE&ssDocName=NASDW_003886
• NASD Conduct Rule 2210 ‘Communications With the Public’ especially rule 2210.(d)(1) and 2210.(d)(2)(N)
  http://nasd.complinet.com/nasd/display/display.html?
  rbid=1189&element_id=1159000480

United Kingdom

Regulator and Investor Association Websites

• Financial Services Authority
  http://www.fsa.gov.uk/
• London Stock Exchange
  http://www.londonstockexchange.com/
• Financial Ombudsman Service
  http://www.financial-ombudsman.org.uk/
• United Kingdom Shareholder’s Association
  http://www.uksa.org.uk/
• Proshare (UK) - promotes private share ownership generally and is sponsored by institutions and larger companies
  http://www.proshare.org/

Financial Data and Newsletters and Financial Analysis and Trading

• See the extensive links at:
  http://www.uksa.org.uk/Links3.htm

Regulations, Publications and Reports

• FSA Authorisation Manual (2004) –
  details criteria for determining whether activities conducted by investment-related internet sites, service providers and portals are regulated activities.
  http://fsahandbook.info/FSA/handbook.jsp?doc=/handbook/AUTH
  or
  http://www.fsa.gov.uk/pubs/hb-releases/rel35auth.pdf
• FSA Handbook – outlines common processes for the regulation and authorisation of firms.
  http://fsahandbook.info/FSA/index.jsp
• FSA Handbook guidance specifically regarding the criteria for authorisation as a regulated activity
  http://fsahandbook.info/FSA/handbook.jsp?doc=/handbook/AUTH/6
• FSA Consultation Paper, ‘The Conduct of Business Sourcebook’ – outlines regulations regarding online financial promotions
  http://www.fsa.gov.uk/pubs/cp/cp45_annexa.pdf
• FSA Discussion Paper on E-Commerce – provides some information on the regulation of online investment
  http://www.fsa.gov.uk/pubs/discussion/dp6.pdf
• FSA approach to exclusion of liability clauses on broking websites
  http://www.fsa.gov.uk/pubs/additional/IMRO_Rep23.pdf
• ‘Polarisation and Financial Services Intermediary Regulation: Report to FSA by London Economics’ – outlines some suggested regulatory responses to the increasingly online nature of investment
  http://www.fsa.gov.uk/pubs/other/polar.pdf
• Murray, A. and Scott, C. (2002), “Controlling the New Media: Hybrid Responses to New Forms of Power” 65(4) Modern Law Review 491-516

Canada

Legislation
Regulator and Industry Association Websites

• Ontario Securities Commission
  http://www.osc.gov.on.ca/
• British Columbia Securities Commission
  http://www.bcsc.bc.ca/
• Canadian Securities Administrators
  (forum for 13 provincial securities commissions)
  http://www.csa-acvm.ca/
• Investment Dealers Association
  http://www.ida.ca/whatsnew_en.asp
• Mutual Fund Dealers’ Association of Canada
  http://www.mfda.ca/
• Market Regulation Services Inc.
  http://www.rs.ca/en/home/

Regulations, Publications and Reports

• Rules made under the British Columbia Securities Act
  http://www.qp.gov.bc.ca/statreg/reg/S/Securities/194_97.htm
• BCSC ‘Registration Requirements Document’ – outlines the criteria for determining whether a dealer or adviser must be registered
  http://www.bcsc.bc.ca/policy.asp?id=2443
• OSC Rules regarding Registration Requirements and Related Matters
  http://www.osc.gov.on.ca/Regulation/Rulemaking/
  Current/rrn_part3_index.jsp
• OSC Rule 31.505 ‘Conditions of Registration’ – includes rules regarding registered dealers’ duties and suitability of advice
  http://www.osc.gov.on.ca/Regulation/Rulemaking/
  Current/Part3/rule_19990129_31-505fr.jsp
• OSC Investment Dealers’ Association Rules regarding Conflicts of Interest and Disclosure
  http://www.osc.gov.on.ca/MarketRegulation/SRO
  /ida/rr/srr-ida_20040702_ida-bylaws-1-1-29.jsp
• British Columbian Securities Commission Circular: ‘Investing and the Internet’ - provides basic information for retail investors regarding risks in online investing.
  http://www.bcsc.bc.ca/now.asp?id=2015
• OSC Five Year Review of the Ontario Securities Act (2003) – includes specific comments on the effect of internet on the provision of financial services and appropriate regulatory responses
  http://www.osc.gov.on.ca/Regulation/FiveYearReview/
  fyr_20030529_5yr-final-report.pdf
• Regulator ruling on registration requirements for a US company executing trades for Canadian residents: ‘In the Matter of Datek Online Brokerage Services and Datek Online Financial Services’
  http://www.osc.gov.on.ca/Regulation/Orders/2001/
  ord_20010629_232_datekonline.jsp
• Draft Uniform Securities Transfer Act
  http://www.osc.gov.on.ca/MarketRegulation/SpecialProjects/
  usta/usta_20041112_task-force.pdf
• Mac Neil, M. (2002), “Cyberspace Governance: Canadian Reflections” in M. Mac Neil et al, eds., Law, Regulation, and Governance (Oxford University Press, Canada).
• Johnston,D and Rockwell, K, Canadian Securities Regulation (Butterworths, 3^rd edition, 2003) Ch 23, ‘Internet Investing’.