The first of a trio of legal hearings into the federal government’s proposal to create a national securities regulator began Monday in the Appeal Court of Quebec.

Provincial finance minister Raymond Bachand stressed that Quebec intends to defend its jurisdiction aggressively, as the hearing will have implications for the division of power between the federal and provincial governments generally.

“The debate surrounding this reference is of great importance, because its outcome, should it favour the federal claim, would have a crucial impact on the balance of powers between the provincial governments and the federal government, not just concerning securities, but in many other fields as well,” Bachand said.

He stressed that securities oversight has always been acknowledged as being within provincial jurisdiction. “In our intervention before the court, we will show that we are doing absolutely everything to defend Quebec’s jurisdiction in this sector,” he said.

Bachand continued to argue that the existing system works very well and that Quebec’s regulations are tightly harmonized with those of the other provinces. He noted that other provinces have reservations with the plan for a national regulator, too.

“I encourage the provinces to weigh the scope of the constitutional repercussions that may flow from a decision favourable to the federal government regarding securities. Accordingly, I urge them to come and defend their jurisdiction before the Supreme Court when it considers this matter, a few months from now,” he said.

Alberta, in particular, is aligned with Quebec is direct opposition to the federal initiative. It is an intervener in the Quebec case, and has also filed a reference with the Alberta appeal court against the federal initiative.

Hearings into the Alberta reference are scheduled to begin January 24 and Quebec will be an intervener in that case.

IE