Gov’t moves to create securities regulator
On May 26, the Government of Canada released the proposed Canadian Securities Act, marking a key step towards a long-standing commitment to establish a Canadian securities regulator.
In a press release, the Department of Finance said: "Reflecting the Government’s willingness to work collaboratively with provinces and territories, this is a voluntary regime, which enables provinces and territories to opt in at their choice."
The proposed Act reflects the input of 10 participating provinces and territories, and the Government invites the remaining provinces to join the initiative.
“Canadians, who rely on capital markets for their savings and retirement plans, deserve the protection of strong regulation that reaches all parts of our country,” said Jim Flaherty, Minister of Finance.
“The proposed Act we have released today brings us closer to the regime that markets demand and that Canadian investors need.”
A statement from the Minister’s office said: "As Canada’s performance during the global financial crisis demonstrated, our financial regulatory regime is a sound model for other countries. However, Canada is the only major industrialized country that lacks a national securities regulator. Our financial system can be strengthened by the establishment of a national securities regulator to oversee Canada’s capital markets. This step will strengthen the stability, integrity and effectiveness of the Canadian financial system."
The proposed regime will provide:
• better and more consistent protection for investors across Canada;
• improved regulatory and criminal enforcement to better fight securities-related crime;
• new tools to better support the stability of the Canadian financial system;
• faster policy responses to emerging market trends;
• simpler processes for businesses, resulting in lower costs for investors; and
• more effective international representation and influence for Canada.
