The provinces opposed to the creation of a national securities regulator Thursday announced plans to further improve the existing provincial regulatory framework with further harmonization and provincial cooperation.
The Provincial-Territorial Council of Ministers of Securities Regulation, which includes all of the provinces and territories apart from Ontario, announced that, in a June 17 conference call, they agreed to create a Memorandum of Agreement (MOA) to establish a “network-based co-operative regulatory model”.
The agreement, which they plan to finalize at a meeting scheduled for Sept. 23, aims to feature: common securities legislation and rules, which nevertheless allow for some local variation; a Council of Ministers that will take a more proactive role in policy development and oversight; and, addresses concerns about the need to manage systemic risk.
It also suggests that it will explore the ideas of formalizing the legal structure and responsibilities of the Canadian Securities Administrators (CSA); and, of creating a common adjudicative body.
Earlier this year, the federal government reiterated its commitment to create a common national regulator on a cooperative basis with willing provinces. Failing that, it said that it would create a regulator to take responsibility for the areas of securities regulation that the Supreme Court of Canada has suggested should fall under federal jurisdiction.
Given its continuing interest in regulation, the federal government has proposed legislative amendments to continue operating the Canadian Securities Transition Office (CSTO), which is otherwise slated to dissolve July 12, indefinitely.
The provinces, which issued a report earlier this year acknowledging that there may be a role for the federal government in securities regulation, said today that they recognize that “continuous improvements to the Canadian securities regulatory system are desirable to meet the increasing expectations of investors and the capital markets.”
And, they also reiterated a desire for Ontario and the federal government to participate in this effort by asking them to attend the September meeting.