The federal government is confident that its plan for a national securities regulator will stand up in a court of law, according to Finance Minister Joe Oliver.

“We believe that the structure that we’ve established for the Co-operative Capital Markets Regulator (CCMR) is consistent with the 2011 Supreme Court [of Canada (SCC)] decision, so we’re very comfortable it will withstand the constitutional challenge,” said Oliver at an event in Toronto on Thursday. “It’s been structured in a way to respond to all the directions that the Supreme Court laid out.”

The federal finance minister was responding to the Quebec provincial government’s announcement earlier on Tuesday that it intends to bring the current plan for the CCMR before the Court of Appeal of Quebec for a ruling on its constitutionality.

The province is using a 2011 SCC ruling, which found that securities regulation is mainly within provincial jurisdiction. That decision indicated it would be open to the federal government and participating provinces creating a co-operative model that respects provincial jurisdiction but still allows policy-makers to handle national issues, such as systemic risk.

Quebec is concerned about two key points in the current plan for the CCMR, which includes a new federal law that would apply even to provinces that opt out of participation in the national regulator; and that Ottawa would have a veto within the new authority. This is a “situation that is unacceptable if the division of powers is to be respected,” according to the province’s statement announcing its constitutional challenge.

Oliver called the CCMR an important initiative for the country that will enhance the regulation of Canada’s capital markets.

“That regulation is not broken by any means. It’s sophisticated, but it can, in fact, be improved,” he added. “We see advantages for the capital markets in terms of enhanced investor protection, more effective enforcement and better oversight of systemic risk.”

The CCMR is to launch in the autumn of 2016, with rules and revised legislation for the new body expected to be published this summer. Thus far, Ontario, British Columbia, Saskatchewan, New Brunswick, Prince Edward Island and the Yukon are the provinces and territory participating in the CCMR.