Federal finance minister Jim Flaherty today announced the chairman and members of an expert panel charged with providing advice and recommendations on securities regulation in Canada.

“I am asking the panel to develop a model common securities act to create a Canadian advantage in global capital markets,” said Flaherty in a release.

“This effort will build on positive steps taken in recent years by the full range of partners, including provinces, territories and regulators, contributions by private sector groups, and international best practice,” Flahery added.

A previous committee headed by Purdy Crawford drafted a plan for a single Canadian securities regulator back in 2006.

The new expert panel will provide independent advice and recommendations to ministers — federal, provincial and territories — on the best way forward to improve securities regulation in Canada.

The panel will be chaired by Tom Hockin, former Minister of State (Finance) and former president of the Investment Funds Institute of Canada.

The other panel members are:

  • Ian Bruce, CEO, Peters & Co Ltd.;
  • Denis Desautels, Executive-in-Residence, University of Ottawa, and former Auditor General of Canada;
  • Hal Kvisle, president and CEO, TransCanada Corp.;
  • Dawn Russell, Associate Professor, former Dean of Law, Dalhousie University;
  • Terry Salman, chairman, president and CEO, Salman Partners Inc.; and
  • Heather Zordel, partner, Cassels Brock & Blackwell LLP.

Also appointed today are special advisors to the panel:

  • Howard Davies, Director of the London School of Economics and former chairman of the United Kingdom’s Financial Services Authority (FSA);
  • David Green, Advisor on International Affairs, Financial Reporting Council and former senior executive with the FSA; and
  • Peter Hogg, Scholar in Residence at Blake, Cassels & Graydon LLP and professor emeritus, Osgoode Hall Law School, York University.

The panel will deliver a final report and draft model securities act to Flaherty and to provincial and territorial ministers responsible for securities regulation by the end of 2008.

The group will focus on five key areas:

  1. The outcomes, principles and performance measures needed to pursue a Canadian advantage in global capital markets;
  2. How Canada could best promote and advance proportionate, more principles-based regulation;
  3. How this could facilitate and be reinforced by better enforcement;
  4. How this regulatory approach could be implemented under a passport system or under a model common act with a common securities regulator; and
  5. The transition path, including key steps and timelines, to effect proposed changes to the content, structure and enforcement of regulation.

The Investment Industry Association of Canada (IIAC) says it welcomes today’s announcement.

“The panel has a unique opportunity to design an efficient, cost-effective and regionally responsive securities regulatory framework for Canada,” says Ian Russell, president and CEO, IIAC.

The IIAC says it is encouraged that the expert panel will be focusing on the principles-based approach to regulation which is premised on broad principles
underpinned by core rules.