David Brown, chairman of the Ontario Securities Commission, revived talk of his pan-Canadian securities commission proposal in a speech to the National Press Club in Ottawa on Wednesday.

Brown cited the trouble in launching the online insider reporting system, the System for Electronic Disclosure by Insiders, also known as SEDI, as an example of the need for a national commission.

“For reporting issuers, SEDI provides ease of use and the ability to file statutory reports electronically on a 24-hour basis. For investors, it provides free, searchable public access to insider trading information. For our market system, it will provide transparency and deter insider trading on confidential information. There are so many benefits, the obvious question is: Why did it take so long?” Brown asked.

“One reason is the difficulty in bringing together 13 provinces and territories. The idea was first proposed five years ago. Five years of debate on the nature of the system and what it would include. Five years of discussion of the legal requirements. More than anything, it is a graphic reminder of the need for an ongoing national structure to pursue equities market regulation and enforcement,” he said.

He noted that the 13 separate sets of rules and 13 separate sets of regulators create, “wide differences that add to the cost and complexity of the system, while seriously diminishing its efficiency. Too many decision-makers add up to a cost burden on all Canadians who participate in Canada’s financial markets – the costs of dealing with separate commissions, supporting them through fees, and accommodating potential differences among them.”

Brown applauded the move to streamline and harmonize regulations via the Uniform Securities Legislation project. “This kind of initiative is valuable,” he said. “But it would still leave us with a system in which market participants support 13 regulators.”

The obvious solution is a single, national securities commission with representation from all regions of Canada, he said. “Given Canada’s political realities, we must recognize that a national commission does not have to be a federal commission. That is why I believe what Canada needs is more in the nature of a Pan-Canadian Commission, created by the provinces with federal government support.”

“Our system is able to come together to deal with emergencies. We need a system that can also come together to deal with everyday regulation. We need a national market regulator to deal with national issues on a Pan-Canadian basis — and deal with potential crises before they become actual ones,” Brown added.