Provincial-Territorial Council of Ministers of Securities Regulation Committed to Ongoing Reform
CALGARY, June 25, 2014 /CNW/ - The Provincial-Territorial Council of Ministers of Securities Regulation (Council) met on June 22-23, 2014 in Charlottetown, Prince Edward Island.
The Council recognizes the need to make continuous improvements to the Canadian securities regulatory system to meet the increasing expectations of investors and to keep pace with evolving capital markets.
The Council's priority is to maintain an innovative, competitive and flexible regulatory system that protects investors and fosters fair, efficient and transparent capital markets, as well as enhancing the identification and reduction of systemic risks in Canada. The 2013 Progress Report, as approved by Council, describes those improvements.
The Council is concerned about further fragmentation of the securities regulatory system if the Common Market Regulator proposal developed by the federal, British Columbia and Ontario governments is implemented. It was noted that Alberta, Québec and Manitoba reconfirmed their opposition to the Common Market Regulator proposal and the federal legislation. Other jurisdictions continue to evaluate their options.
At the meeting, the Council agreed in principle to continue to work toward establishing a cooperative provincial-territorial securities framework that will recognize and preserve provincial and territorial authority to regulate securities. Elements of the framework will include:
- a coordinated legislative process to maintain and enhance harmonized securities legislation and regulation, while preserving the flexibility to accommodate regional differences and innovation;
- improving the effectiveness of the Council;
- strengthening collaboration and information-sharing among all provincial and federal entities with a financial stability mandate to enhance the identification and reduction of systemic risks through the establishment of a national systemic risk committee;
- improving administrative adjudication by moving to a common adjudicative tribunal;
- improving the enforcement of criminal and quasi-criminal laws relating to the securities market by creating a common enforcement agency; and
- strengthening provincial-territorial participation in international forums as part of Canadian delegations. The process for representation will be developed in consultation with the federal government.
The Council has directed its government officials to develop a provincial and territorial Memorandum of Agreement, to reflect the agreed to elements of the cooperative provincial-territorial securities framework, which will be considered by the Council at its September meeting.
Council believes that this alternative cooperative model provides a better framework for improving and enhancing the provincial-territorial securities regulatory system for Canada than the capital market regulator proposed by British Columbia, Ontario and the federal government, while addressing the concerns of those governments.
It is the view of the Council that our alternative cooperative model will reduce market fragmentation, improve enforcement, identify and reduce systemic risks, and reduce regulatory burden.
The Council also discussed industry's recent requests to formally recognize financial planning as a profession, as well as recently proposed changes by the provincial and territorial securities regulators to capital raising exemptions, including the offering memorandum exemption.
The Chair of the Canadian Securities Administrators (CSA) updated the Council on proposed enhancements to the CSA and the Passport System, and progress on the current CSA business plan.
The Council remains committed to ensuring Canada continues to have one of the best securities regulatory regimes in the world, providing for high standards of investor protection and efficient, vibrant and competitive capital markets going forward.
More information about the Council, including the Council 2013 Progress Report, can be obtained at www.securitiescanada.org.
SOURCE Alberta Public Affairs BureauFor further information:
Office of the Alberta President of Treasury Board and Minister of Finance
Attachée de presse et responsable des communications
Cabinet du ministre des Finances