Lessons of Bre-X (?)

Abstract

In the 1960s, the Windfall scandal led to the commissioning of the Kimber Report and ultimately to the systematic revamping of the securities regulatory system in Ontario (and in Canada). In this article, the author argues that the impact of the Bre-X scandal is likely to be modest by comparison. In light of Bre-X, this article addresses a number of questions about the regulation of small firms, primary market offerings, and the importance of appearances when deciding how to respond to such scandals.