TORONTO, June 28, 2012 /CNW/ - In the wake of a setback from the Supreme
Court of Canada, Ottawa is forging ahead with the idea of creating a
national securities regulator using a cooperative approach that could
pay off, according to a new report from the C.D. Howe Institute. In
"Finding Common Cause: The Renewed Quest for a National Securities
Regulator," author Jeremy Fraiberg assesses the chances of reaching
federal-provincial agreement on creating a common regulator.
"The goal is feasible and desirable in view of the shortcomings of
Canada's current collection of 13 provincial and territorial
regulators," notes Fraiberg. "It remains to be seen, however, which
provinces will cooperate with the federal government and, if so, on
Although the Supreme Court ruled Ottawa's proposed Securities Act was unconstitutional, it nevertheless endorsed the possibility of a
national securities regulator based on a model of cooperative
federalism. Ottawa's decision to forge ahead is welcome news, according
to Fraiberg. Canada is the only developed country in the world without
a national securities regulator. The current system, he says, suffers
from a number of infirmities: policy development that is bogged down by
the need to gain consensus among multiple jurisdictions; inconsistent
enforcement and investor protection; duplicative and inefficient
compliance costs; the lack of a single point of accountability, which
impairs the regulation of systemic risk; and the inability of Canada to
speak with one voice internationally.
Fraiberg discusses the potential for agreement by Ontario, British
Columbia, Alberta and Quebec - which have the four largest and most
important securities regulators - and notes that Quebec would be
unlikely to participate. As a result, a passport system - which would
harmonize and allow for mutual recognition of regulatory requirements -
could be implemented between the national regulator and Quebec.
The C. D. Howe Institute is an independent not-for-profit research
institute whose mission is to raise living standards by fostering
economically sound public policies. It is Canada's trusted source of
essential policy intelligence, distinguished by research that is
nonpartisan, evidence-based and subject to definitive expert review. It
is considered by many to be Canada's most influential think tank.
For the report go to: http://www.cdhowe.org/finding-common-cause-the-renewed-quest-for-a-national-securities-regulator/18154
SOURCE C.D. Howe Institute
For further information:
Jeremy Fraiberg, Partner, Osler, Hoskin & Harcourt LLP; or Philippe Bergevin, Senior Policy Analyst, C.D. Howe Institute; 416-865-1904, email:email@example.com.