Quebec is reiterating its opposition to federal involvement with securities regulation, and warns that it will go to court to defend its jurisdiction if necessary.

Monique Jérôme-Forget, Quebec’s Minister of Finance, said Tuesday that the province will examine the report of the Expert Panel on Securities Regulation and identify the measures that could improve the existing system.

The panel, formed by the federal Finance Minister Jim Flaherty, is recommending that the federal government set up a single securities regulator with a mandate to enforce a single Canadian securities act

“However, I hope Minister Flaherty will have the good sense to reject the idea of federal legislation,” Jérôme-Forget said.

She stressed that securities regulation is under provincial jurisdiction and said that Quebec will go to court to oppose any federal bill seeking to govern securities. “Like Manitoba and Alberta, we believe that the federal government must not change the division of constitutional jurisdictions and usurp the powers of the provinces. That is not our vision of federalism,” she added.

“The existing regulatory system, administered by the provinces and territories, works well and satisfies both the needs of pan-Canadian participants and the interests of the regions,” she argued.

“Should it go ahead and pass securities legislation, as recommended in this report, the federal government could needlessly cause uncertainty on financial markets. The price to be paid by the Canadian economy to settle imaginary problems seems too high,” she said. “A period of economic crisis is not the right time to undertake major structural reforms, and especially not reforms on which there is no consensus and whose legal grounds are doubtful to say the least. Federal intrusion in securities regulation is a bad idea when times are normal. In times of crisis, the economic consequences would be disastrous.”

IE