The federal government has decided to appoint yet another group to look at the possibility of creating a national securities regulator, among other ways to improve securities regulation.

Following a meeting with provincial and territorial ministers responsible for securities regulation, federal finance minister, Jim Flaherty, issued a statement Tuesday evening indicating that the government plans to form a “third-party experts group”.

All provinces and territories are invited to participate in this collaborative process, Flaherty said, including suggesting names for the expert group, and providing input to them as they carry out their work.

The expert group will deliver an interim report to the Minister of Finance and ministers responsible for securities regulation by December and a final report by the end of March 2008.

The group will to advise the government on:

  • the outcomes, principles and performance measures that will best anchor securities regulation and the pursuit of a Canadian advantage in global capital markets;
  • how Canada could best promote and advance proportionate, more principles-based regulation, starting from existing harmonized legislation and national and multilateral regulatory instruments;
  • how this progress could facilitate, and be reinforced by, better coordination of enforcement efforts;
  • how this approach to regulation could be implemented under a passport or under a common securities act and a common securities regulator; and
  • the transition path, including key steps and timelines, that participating provinces and territories could adopt to effect proposed changes to the content, structure and enforcement of regulation.

“I will continue discussions with my provincial and territorial colleagues on how we can move forward on these issues in the weeks and months ahead,” Flaherty added.

In addition to announcing the creation of this latest group, Flaherty said he detailed the government’s progress on its other plans to improve capital markets competitiveness, including:

  • naming former Superintendent of Financial Institutions, Nick Le Pan, to the RCMP’s market enforcement team;
  • tabling amendments to bankruptcy and insolvency laws;
  • consulting with the securities commissions on draft regulations for principal-protected notes; and
  • drafting a paper, to be issued this week, to align federal statutes with provincial and territorial securities transfer laws.

“We also reviewed progress made by provinces and territories and the Canadian Securities Administrators to harmonize and streamline securities regulation. All ministers agreed these steps are constructive and will lead to lower regulatory barriers and reduced costs for issuers and investors,” he said.

“We had a productive meeting, a good exchange of views, and I stressed the importance of creating a Canadian advantage in global capital markets. The objectives are to give enterprises of all sizes better access to capital at more competitive costs, provide investors with increased investment choices and create more jobs for Canadians,” he added.