The British Columbia government has pulled its support of the current initiative to create a national securities regulator.

As it submitted its legal briefing to the Supreme Court of Canada on the reference to decide if there’s federal jurisdiction to establish a national regulator, the B.C. government said Tuesday that while it still supports the concept, it does not favour the current model that’s being proposed.

“British Columbia is not able to support the manner in which the proposed federal legislation would impose the regulator. The federal proposal pushes the boundary of federal legislative jurisdiction into what has historically been an exclusively provincial domain,” B.C. Finance said in a statement.

“British Columbia argues there would be constitutional ramifications in a broad range of cases in the future if that boundary is pushed by the current proposed federal securities legislation filed before the Supreme Court of Canada.”

“The federal government has responsibility over trade and commerce – provincial governments have responsibility over property and civil rights. British Columbia has consistently argued these types of business fields fall squarely within provincial jurisdiction,” said B.C. Finance Minister Colin Hansen.

“There is still good support for a national securities regulator, but we must ensure the model is effective, stable and constitutionally sound. It must build on the strong foundation of the provincial regulatory system, improve enforcement, and be responsive to regional economies — such as B.C.’s vibrant venture capital markets.”

“We continue to support the concept of a national securities regulator. Building an effective national system is a timely and necessary move that could give Canada a competitive advantage,” Hansen added. “However, our support is not without conditions.”

The province suggested that it would support a more co-operative model.

“Rather than having provinces surrender jurisdiction to the federal government, both levels of governments must co-operate in regulating securities, with provinces delegating their authority to a federally created national regulator,” B.C. Finance said.

B.C. intends to continue working with the other jurisdictions that support the national regulator, and the Canadian Securities Transition Office, to develop a legal framework for a more co-operative approach.

“This legal framework should include both provincial and federal legislation, with provincial legislation either harmonized with federal legislation or incorporating it by reference, although some slight differences between provinces may be needed to accommodate local and intra-provincial issues,” it said. “The framework should provide for joint governance by participating provinces and the federal government, and also allow provinces to opt out of the scheme if they choose to do so.”

IE