FIPA was signed, according to the Harper government, to protect Canadian investors against discriminatory and arbitrary practices of China.
Sino-Forest, like other foreign invested forestry company in China, has been treated discriminatively by the Chinese government, while it has the policy that China won't issue certificates to foreign invested companies for their timber assets in China.
The OSC has been asking Sino-Forest to show proof for the timber assets it claimed ownership in China since Muddy Water's report alleging the company a Ponzi scheme and total fraud.
After Sino-Forest trying to prove the ownership by showing the OSC the confirmations from the Chinese Forestry Bureaus, the contracts, verification by Independent Forestry Experts, etc., the OSC alleges Sino-Forest fraud because it failed to show certificates, which are refused by the Chinese government to issue and are unfortunately indeed the only ones the OSC will accept as legal proofs of timber assets in China.
Whom is the OSC protecting? Definitely not the Canadian investors, since shareholders of Sino-Forest have lost everything due to the fraud allegations and the Restructuring Plan.
The OSC is protecting the Chinese government's discriminatory practices to Canadian investors.
Canadian investors will continue to be encouraged to invest in China, while Chinese government will be more comfort than before refusing to issue formal certificates, and the OSC will come to check the certificates, allege fraud of the companies and make Canadian investors lose everything at any time.