Stephen Sibold, chairman of both the Alberta Securities Commission and the Canadian Securities Administrators, touted the uniform securities law project as the best, most practical securities reform effort underway today.

In a speech to the Canadian Club in Calgary Tuesday, Sibold conceded that there is also some merit in the national regulator idea, primarily that it would give Canada a single voice to the rest of the world. But he spoke against many of the other arguments favouring a national commission.

“Like it or not, we have a very decentralized federation — a reflection, no doubt, of our strong regional identities and vast expanses,” he said, noting that this federation has given regulatory jurisdiction to the provinces. Ontario seems to be the only province in favour of a national commission, he added.

The current system is actually effective and efficient, Siblod said. Canada has a large number of very small public companies, and a relatively small number of larger public companies, and Canada has the second lowest cost of capital in the world. “I suggest that these two facts alone demonstrate that our current regulatory system is both efficient and cost-effective. How could it otherwise facilitate such a large number of small companies accessing the public capital markets?”

He also argued that a national regulator wouldn’t necessarily improve enforcement. “Effective enforcement is dependent on a number of factors, including adequate resources, training of staff and, above all, a commitment to make vigorous enforcement a priority,” he said. “That means it has to be a priority not just for the securities regulators but also for the police forces, attorneys general and the judiciary. To my mind, these systemic issues cannot simplistically be addressed by the formation of a single national regulator.”

Sibold insisted that the CSA has been effective in harmonizing and coordinating the development and administration of securities regulation in Canada. “With a formal governance structure and dedicated resources, the CSA will be in a stronger position to achieve its strategic objectives, including the creation of harmonized legislation across jurisdictions, and a globally competitive regulatory environment,” he said.

“I believe that the USL project, coupled with the efforts of the provincial ministers responsible for securities regulation, is the most practical and achievable reform option on the table right now,” he concluded.

The USL is out for public comment until May 17. The draft legislation could be ready for consideration in the 2005 spring sessions of the provincial legislatures.