[4] The other component of the Bank’s earnings is valuation gains and losses arising from fluctuations in the value of its assets due to movements in exchange rates or changes in the market yields on securities held outright. As the Bank applies fair value accounting in its financial statements, such movements have an immediate impact on earnings.
While we have seen some first steps to strengthen enforcement over the past couple of years, there still is a perception, both in Canada and abroad, that Canadian authorities aren't consistent in their efforts to enforce the rules against insider trading and other offences, nor tough enough in rooting out and punishing fraud.