The Council of Ministers of Securities Regulation are plowing ahead with the passport model for securities regulation.

The group of provincial ministers met in Edmonton on November 22 and 23 to approve the next phase of the passport system and review progress on the initiative to harmonize and streamline securities laws across Canada.

The ministers instructed their regulators to proceed expeditiously, they said. The passport is one of the commitments in a memorandum of understanding, which was signed by all Canadian provinces and territories, with the exception of Ontario.

“The provinces and territories have committed to getting their legislation in place to move forward with the passport system,” said Shirley McClellan, deputy premier and minister of finance for Alberta, and chair of the Council. “Our reforms are making real and significant improvements for industry in Canada.”

The Council oversees implementation of the commitments in the MOU and explores options for further reform. The ministers say they are committed to working together on an ongoing basis to ensure that the highest standards of investor protection are effectively and consistently applied. The passport system will enable issuers and registrants to deal only with the securities regulator in their principal jurisdiction.

“The passport system is the best and fastest way to break down the barriers between jurisdictions,” said McClellan. “These reforms will put Canada in an even more competitive position, improving a system that the OECD and the World Bank already rank among the best in the world.”

The first phase of the passport was implemented in September 2005 and gave issuers and registrants certain exemptions in other jurisdictions provided they met the requirements in their principal province or territory. Phase two will build on those improvements and create a true single window of access to capital markets in 12 Canadian provinces and territories.