We believe the anti-spam provisions are too broad as they relate to business-to-business communications. Where a business makes its e-mail address public and the address is not accompanied by a statement that commercial messages are not welcome, Bill C-27 should treat this as implied consent by the business.
Electronic communications have evolved to be a convenient, quick, and cost-effective way to communicate employment opportunities. One way our members grow is by recruiting new financial advisers through electronic communications. We propose that clause 6 be amended to include an exemption for electronic communication that has as its sole purpose information regarding legitimate employment opportunities.
IFIC supports the proposed penalties. The maximum penalty for a violation is $1 million in the case of an individual and $10 million in the case of any other persons. For violations of clauses 7 and 8, where prohibited actions have the potential to result in large-scale system damage or fraud, these are at the right level.
In the case of clause 6, we believe the penalties are excessive and out of scale to the potential harm caused by a breach. The penalties for contravening clause 6 should be different from the penalties applicable to a contravention of clauses 7 and 8. Within clause 6, we would also propose much smaller deterrent penalties for those businesses that are simply using electronic means as a supplement to their business efforts and where individual violations are not harmful.
IFIC supports the right of public action for violations of clauses 7 and 8 where prohibited actions have the potential to result in large-scale system damage or fraud, but for clause 6, the right of public action seems unnecessary, excessive, and potentially open to abuse. We propose that the right to a public action be limited to violations under clauses 7 and 8.
As noted earlier, the investment industry has rules in place governing communications with the public. The Mutual Fund Dealers Association and the Investment Industry Regulatory Organization of Canada require that all sales communications from their members to the public must first be approved by an officer of the member company. We believe these requirements, together with the provisions of Bill C-27, provide the necessary protection to the public on matters of content as well as the need for sanctions. Accordingly, we recommend an exemption to clause 6 for industries where existing regulatory structures are in place.
We all recognize that technology has changed the way we interact, both on a personal and a business level. Whereas in the past we would have met friends and made new personal or business contacts through dinners, meetings, and other gatherings, today we are doing it through technology. Cyberspace has redefined how we communicate and interact.
Our concerns about the overly broad application of this legislation could be corrected by very simple amendments, primarily in clauses 6 and 10, to provide exemptions and safe harbours for referral business, ongoing fiduciary relationships, business-to-business communications, employment opportunities, and established social networking relationships, together with a refinement of the penalties and private right of action to target the actual wrongdoing in cyberspace.
Thank you for listening. We look forward to your questions.