FAIR Canada
FAIR Canada Newsflash

September 2013

Canadian Regulator Steps Closer to Reality

Common Securities Regulator

 

FAIR Canada is pleased to learn that the governments of British Columbia, Ontario and Canada have announced today an agreement to establish a cooperative capital markets regulatory system. In its December 2011 constitutional reference decision, the Supreme Court of Canada decided that both the provinces and federal government have jurisdiction in securities regulation and it encouraged a cooperative arrangement between the federal government and the provinces. The cooperative system announced today is a major step towards precisely what the SCC suggested with Canada and the provinces retaining legislative authority but agreeing to delegate administration to a common regulator.

 

FAIR Canada believes that the creation of a common securities regulator, with investor protection as a top priority, will provide greater protection for retail and other investors, while at the same time ensuring that the Canadian securities markets operate as efficiently as possible.

 

We agree that a regional office in each participating province is critical to the success of a common regulator. Financial fraud and other misconduct happens at the local level so it is vital that the current provincial resources remain in place and not rely on a head office that is far away.

 

Better Enforcement

 

FAIR Canada believes that a common securities regulator will strengthen securities enforcement in Canada, including more robust criminal prosecutions, better data collection and analysis, and increased specialization. Canada-wide jurisdiction should overcome much of the difficulty in addressing complex investigations that cross provincial and international boundaries.

 

Investor Protection

 

FAIR Canada recommends the following for the common regulator:

  • the expert board of independent directors include strong, experienced investor representatives;
  • a statutory investor advisory panel to represent the voice of the financial consumer to the Regulator and/or Council of Ministers directly;
  • one, national-wide, statutory, independent ombudservice for financial services complaints that has binding decision-making authority (not multiple, for-profit, external dispute resolution providers); and
  • that investor protection be central to the forthcoming cooperative system's securities legislation.

We commend Finance Minister Flaherty for his perseverance and the Ontario and BC Finance Ministers for being able to find common ground with Mr. Flaherty. All the provinces and territories are invited to participate in the proposed new cooperative system.

 

For further information, please contact:

 

Ermanno Pascutto  416-214-3443

Executive Director

[email protected]

 

Marian Passmore  416-214-3441

Associate Director

[email protected]

 

Lindsay Speed  416-214-3442

Legal Counsel

[email protected]

 

 

Note:

Links to Backgrounder and Agreement between Federal Government, BC and Ontario.

 

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