Stress need for transparency, clarity and accountability
TORONTO, July 15 /CNW/ - In order to efficiently facilitate
competitiveness and innovation within Canada's financial marketplace, a single
Securities Act overseen by an independent national securities regulator must
be implemented, says Financial Executives International Canada (FEI Canada) in
its submission to the Expert Panel on Securities Regulation (Expert Panel).
A critical component of FEI Canada's recommendation to enhance the
efficiency of securities regulation is that any system of securities
regulation adopts a principles-based approach rather than be rules-based.
"A regulatory framework founded on high-level principles better addresses
the ongoing changes in Canada's financial marketplace," said Michael Conway,
Chief Executive and National President of FEI Canada. "This form of regulation
would create a more agile system which inevitably elevates the stature of
Canadian financial markets globally."
FEI Canada's response paper noted that a principles-based approach to
securities regulation would still involve rules, but that these should be
focused on clear and simple principles for guidance.
Focusing on regulatory enforcement, FEI Canada stressed the need for
consistency and predictability, noting that a principles-based regulation
provides the best means of determining whether a reporting issuer's
disclosures present a true and fair view of its financial condition. FEI
Canada further recommended the appointment of an independent adjudicator with
the powers to apply regulation consistently across Canada.
"It is imperative that Canada's regulatory system supports and enhances
the competitiveness of the Canadian economy and creates a responsive
environment for both domestic and international issuers to quickly access the
capital markets," stated Conway.
FEI Canada's submission to the Expert Panel focused on three areas -
expedient enhancement of Canada's securities regulatory structure, consistent
and predictable enforcement, and mandating regular reviews of any resulting
system of securities regulation - all key components necessary for a
modernized and efficient model of securities regulation.
As highlighted in its submission to the Expert Panel, FEI Canada urged
the government to expediently implement efficient, cost effective and
responsive regulation supported by a transparent and simple process. In doing
so, FEI Canada recommended the creation of a common securities regulator
supported by a single Securities Act and governed by an independent Board of
FEI Canada strongly encouraged the Department of Finance to initiate a
formal, comprehensive and regular mandate review of Canada's system of
In drawing together the recommendations proposed to the Expert Panel, FEI
Canada conducted a survey of its more than 2,100 senior Canadian financial
executive members located nationally. With this input, FEI Canada's Capital
Markets Committee formulated the recommendations which have been put forward
to the Expert Panel.
"FEI Canada believes that a common securities regulator, representative
of all participating jurisdictions, is the most pragmatic system," stated
A copy of the full submission can be found at FEI Canada Expert Panel
About FEI Canada
FEI Canada is the all-industry professional membership association for
senior financial executives. With eleven chapters across Canada and more than
2,100 members, FEI Canada provides professional development, thought
leadership and advocacy services to its members. The association membership,
which consists of Chief Financial Officers, Audit Committee Directors and
senior executives in the Finance, Controller, Treasury and Taxation functions,
represents a significant number of Canada's leading and most influential
corporations. Further information can be found at www.feicanada.org.
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