The announcement that two more provinces are joining the federal initiative to create a national regulator doesn’t change the fact that it will have to conform to the constitution and the division of federal and provincial powers, warns Quebec finance minister Carlos Leitão.

Following the news that Saskatchewan and New Brunswick have agreed to join the federal government’s latest push to establish the Cooperative Capital Markets Regulator (CCMR), Leitão and the Quebec minister responsible for Canadian intergovernmental affairs and the Canadian Francophonie, Jean-Marc Fournier, reiterated Quebec’s opposition to the plan.

“Adherence by Saskatchewan and New Brunswick to the agreement in principle in no way alters Quebec’s desire to maintain its own jurisdiction in the realm of securities,” they said.

“The Canadian federal system hinges on respect for the sharing of constitutional jurisdiction and cooperation between levels of government. The Supreme Court has already declared the federal proposal unconstitutional. The addition of two other provinces in no way alters the situation,” Fournier added. “Our position remains the same and we continue to vigorously defend Quebec’s fields of jurisdiction.”

Indeed, they warned that the legislation to implement the plan for a cooperative regulator must adhere to the constitution. “Possible participation by the two provinces does not change the need to examine the proposal in detail when the bills that must implement it are made public to avoid any risk concerning its constitutional validity and as regards the attendant fragmentation of the current system,” they said.

They also stressed that the existing system works well, without engaging any constitutional concerns. “We must, therefore, ensure that the federal proposal does not reduce its effectiveness,” they said.

And, they noted that they will continue to work to improve the current system, as promised by the council of ministers responsible for securities regulation last month. “Quebec continues to seek to develop a new provincial-territorial agreement aimed at further broadening the excellent collaboration between governments with respect to securities oversight,” Leitão said. “The new agreement does not raise any constitutional question and bolsters, instead of threatening, the integrity of the Canadian system. I therefore wish to reiterate our invitation to all governments to join our initiative.”