While advocates of a national securities regulator remain hopeful that the latest proposal for a cooperative regulator will gain traction with most of the provinces, the current scorecard remains two in favour, three against.
According to a new statement from the Provincial-Territorial Council of Ministers of Securities Regulation (which excludes Ontario and British Columbia), following a meeting on June 22 and 23, in Charlottetown, PEI, the council, “is concerned about further fragmentation of the securities regulatory system if the Common Market Regulator proposal developed by the federal, British Columbia and Ontario governments is implemented.”
Indeed, it reports that Alberta, Québec and Manitoba have reconfirmed their opposition to the common regulator proposal, and accompanying federal legislation. B.C. and Ontario remain the only provinces that have formally committed to the proposal, and the council notes that the other jurisdictions “continue to evaluate their options.”
In the meantime, it says that the council has agreed to continue working toward, “establishing a cooperative provincial-territorial securities framework that will recognize and preserve provincial and territorial authority to regulate securities.” Once again, it is hoping to have a memorandum of agreement developed to sketch out its vision for a cooperative regulatory framework to be considered by the council at its next meeting in September.
“Council believes that this alternative cooperative model provides a better framework for improving and enhancing the provincial-territorial securities regulatory system for Canada than the capital market regulator proposed by British Columbia, Ontario and the federal government, while addressing the concerns of those governments,” it says. “It is the view of the council that our alternative cooperative model will reduce market fragmentation, improve enforcement, identify and reduce systemic risks, and reduce regulatory burden.”
The council indicates that it envisions a framework that will include: a common adjudicative tribunal; a common enforcement agency; and, a coordinated legislative process that would help maintain harmonized securities legislation and regulation, while preserving the flexibility to allow for regional differences.
It also wants the framework to improve the efficacy of the council; establish a national systemic risk committee; and, strengthen provincial participation in international forums.
At the meeting, the council also discussed recent initiatives aimed at formally recognizing financial planning as a profession; and, proposed changes to expand the exempt market. It also received an update from Bill Rice, chair of the Canadian Securities Administrators (CSA) and chair and CEO of the Alberta Securities Commission (ASC), on proposed enhancements to the CSA, the passport system, and the CSA’s current business plan.