Work is continuing on a model that would allow individual reps to incorporate, according to a report from a group of provincial ministers that oversee securities regulation.
In its latest update report, the Provincial/Territorial Council of Ministers of Securities Regulation indicates that a working group of government officials continues to examine the issue of incorporation.
The working group published a consultation paper on the issue in December 2010, which proposed several options for possible regulatory models to allow individual reps to incorporate. That paper received 63 written responses from a variety of reps, firms, lobby groups and others, and it notes that the majority of commenters were supportive of the incorporation concept.
Industry supports advisor incorporation, policymakers say
Since then, the working group was directed to develop an acceptable incorporation model and supporting draft legislative amendments. And, the council reports that, in December, Saskatchewan introduced amendments to its securities legislation to provide individual reps with an option to provide securities-related services through a professional corporation.
“The working group plans for further consultation with stakeholders on key elements of the incorporation model and supporting draft legislative amendments capable of being adopted across Canada,” the report notes.
In addition to the incorporation issue, the council’s report also details the status of the securities regulators efforts to address Canada’s G20 commitments, such as a new regulatory regime for credit rating agencies and over-the-counter derivatives; along with other initiatives such as empowering the Canadian Public Accountability Board in all provinces, harmonized securities transfer legislation, point of sale disclosure, and investor restitution.
“The council remains committed to on-going reform of Canada’s securities regulatory system to ensure it remains fair, efficient and stable,” it says.