As part of our federal election coverage, Investment Executive explores the positions of the major federal political parties on the top issues affecting the financial services industry.

Here we look at where the parties stand on tax policy:

The development of a national securities commission is hardly a hot election issue because most seem to be in favour of it. The problem is that the issue is more one of political will, rather than ideology.

The Liberals pledged in last year’s budget to significantly improve the securities regulatory structure by the end of 2005. To that end, the federal government managed to hold one meeting with the provincial ministers that have jurisdiction over the area during the year, with nothing much to show for it.

Among the major provinces, only Ontario is committed to a national regulator. The rest favour a looser harmonization initiative known as the passport model. And Quebec has been most vociferously opposed to any sort of a national body.

The Liberals have championed the idea of a national regulator for some time. In 2003, the party commissioned the Wise Persons’ Committee to study the issue. It issued a report on behalf of the Department of Finance toward the end of that year calling for the creation of national regulator and proposing a possible model. At the time, the government accepted that report, and pledged to work with the provincial authorities toward a national regulator.

Failure to actually achieve a deal on a national regulator has led to criticism from both the other national parties. NDP Finance Critic Judy Wasylycia-Leis has called for a national regulator, criticizing the Liberals for twice promising to do so, yet failing.

Similarly, the Conservative party has also come out in favour of a national securities regulator, while lamenting the current government’s inability to secure a deal with the provinces.

The question of whether a national securities commission makes sense for Canada is less a matter of disagreement between the major parties — all have come out in favour at one time or another. It’s more a question of having the will to take on the provinces that largely object to the notion, and securing a deal.