The Investment Dealers Association of Canada has called on the Ontario government to eliminate capital taxes, bring in legislation to clarify the status of income trusts and to give the IDA new enforcement powers.

In a pre-budget submission to Janet Ecker, Ontario’s Minister of Finance, the IDA notes that it has requested additional powers from the OSC in order to provide more effective enforcement of the industry, “including the ability to obtain investigation orders and compel witnesses to testify and produce documents at disciplinary hearings.”

“The IDA has requested the authority to file decisions of our disciplinary hearings as decisions of the court that will allow the association to collect fines from individuals who have left the industry,” the IDA says, while asking the province to support its effort to increase its enforcement powers.

The IDA applauds the federal move to establish a Wise Persons Committee and the recent announcement by B.C., Alberta, Ontario and Quebec of the establishment of a ministerial group to negotiate regulatory reform. “We are prepared to lend our good offices, our regulatory and capital markets experience, plus our strength as a national organization with deep regional roots to assist all parties in negotiating success. We are very encouraged that you are prepared to exercise your political leadership in improving the regulatory system to the advantage of investors and the efficiency and competitiveness of the Ontario and Canadian capital markets,” it says.

It said Ontario should bring forward a plan for the elimination of corporate capital taxes, and should introduce legislative amendments that would limit liability to the unitholders of income trusts and strengthen traded markets for these instruments through increased institutional participation.