A group of provincial ministers continues to call for Ontario to join the passport system of securities regulation.

On Tuesday, the Provincial-Territorial Council of Ministers of Securities Regulation released a communiqué, more than a month after their last meeting on September 18 in Quebec City. It reports that at that meeting they reaffirmed their commitment to fully implement the passport system, and called on Ontario to join the effort.

The Council of Ministers confirmed that all jurisdictions that signed onto the memorandum of understanding to implement the system will have harmonized registration-related legislation in place to support the implementation of the new national registration rule but expressed disappointment that the Ontario government may not pass legislation in time to meet the spring 2009 target for implementing the national registration rule.

Under the system, market participants have been able to clear a prospectus or obtain a discretionary exemption since March 17, and, in spring 2009, they will be able to register as a dealer or adviser, by obtaining a decision from the securities regulator in their home province or territory and have that decision automatically apply in all other passport jurisdictions.

The Council of Ministers reports that it strongly encouraged Ontario’s minister of finance, Dwight Duncan, who attended the meeting to harmonize Ontario legislation and join the passport system. It believes that the system “continues to be the easiest, fastest and cheapest way to significantly reform securities regulation in Canada.” And, it noted that the system is a natural model for free trade in securities and mutual recognition with the United States and other G-7 countries.

In addition to the passport system, the Council of Ministers also discussed the current asset-backed commercial paper crisis, Québec’s recently-enacted derivatives legislation, fees and Canada’s role in international forums on securities regulation. Ministers noted that a paper released by securities regulators on Oct. 6, and consultations will lead to more positive reforms and enhanced consumer protection. The Canadian Securities Administrators was also asked to review existing derivatives legislation in Canada and to return with recommendations for legislative change that will lead to harmonized legislation.

“We remain committed to ensuring that the highest standards of investor protection are effectively and consistently applied and to ongoing improvements to Canada’s securities regulatory system to support competitiveness, innovation and growth through efficient, streamlined and cost-effective securities regulation that is highly harmonized and simple to use for investors and other market participants,” said Manitoba’s finance minister Greg Selinger, chair of the council.