Action by the federal government to launch a single, national securities regulator has the Provincial/Territorial Council of Ministers of Securities Regulation wondering how resources dedicated to the project might affect is own reform efforts.

The Council is committed to implementing a passport system of securities regulation, which allows market participants to clear a prospectus, obtain a discretionary exemption and register as a dealer or adviser, by obtaining a decision from the regulator in their home jurisdiction and having that decision apply across Canada.

In its annual progress report released Monday, the Council noted the steps taken by the federal government toward the establishment of a single securities regulator.

“A number of jurisdictions participating in the transition process have agreed to dedicate considerable time and staff resources,” the report says.

The report notes two areas of concern.

Firstly, the Council is worried that resources allocated to the transition will hamper the ability of the Canadian Securities Administrators “to implement its ongoing work plan and complete projects undertaken at the request of the Council in a timely fashion.”

Secondly, the “Council is concerned about the potential impact that the focus and dedication of resources to the federal transition process may diminish the unprecedented levels of co-ordination and consensus among provincial and territorial governments and the CSA demonstrated over the past five years to ongoing reform.”


Among those projects, the council has requested that the CSA finalize its review of current derivatives regulation in Canada and make recommendations for a harmonized approach toward it.

The CSA will also conduct a review of requirements relating to the trading of standardized over-the-counter derivatives on exchanges and electronic platforms.

The report also highlights ongoing efforts to bolster investor protection, including new disclosure requirements at the point of sale for mutual funds and
segregated funds; developing a proposal for hedge fund regulation; and considering international developments on proposed ‘say on pay’ legislation, exploring the possibility of adopting similar requirements regarding the vote on executive compensation packages in Canada.

IE