The Provincial-Territorial Council of Ministers of Securities Regulation have issued a report reviewing their progress on the implementation of the passport model for securities regulation, and outlining their priorities for the year ahead.

The report indicates that the jurisdictions that have not yet introduced or implemented the “passport tools” and “targeted Act amendments” required to support the passport system have committed to doing so in 2007. Additionally, the jurisdictions that have not already done so will introduce amendments to harmonize or strengthen enforcement/investor protection provisions.

The council says that it is anticipated that additional amendments will be required to support initiatives such as registration reform, and the provinces are committed to adopting those too.

The report also notes that the council will continue to examine alternatives to improve enforcement. “The council recognizes the current widespread dissatisfaction with enforcement and considers it necessary to take a systematic approach to this complex and important problem,” it says, noting that the council will be represented on the working group established by Federal/Provincial/Territorial Ministers of Justice to consider improvements to enforcement against securities fraud. It will also consider what improvements can be made to enforcement of securities regulation in areas of exclusive provincial jurisdiction, in consultation with the regulators.

Also, a task force (chaired by Alberta and made up of representatives from provincial/ territorial governments, together with members of the Canadian Securities Administrators working to implement the passport system) and the CSA are seeking appropriate benchmarks for measuring the performance of Canada’s securities regulatory system domestically, and for international comparative purposes, it notes.

The council and the task force will analyze the recommendations in the recent report of the IDA Task Force to Modernize Securities Legislation, and consider whether any of those recommendations should be pursued, it reports. “The council is interested in considering any reform that will improve Canada’s securities regulatory system and the competitiveness of our capital markets,” it says.

“Recent recommendations for reform include suggestions for principles-based regulation, the use of cost-benefit analyses in assessing proposed new rules, proportionate regulation, the use of plain language in rules and disclosure documents, promoting the financial literacy of Canadians, transferring the adjudicative functions of securities commissions to independent adjudicative tribunals, the formation of a separate capital markets court, and many others,” it adds. “The council will consult with regulators and other stakeholders to consider which proposals should be considered priorities, and what is the most efficient and coordinated approach to such proposals. The council’s intent is to pursue reform on a timely and highly harmonized basis.”