In presenting Bank of Nova Scotia’s submission on the 2006 Review of Financial Institutions Legislation, Scotiabank president and CEO Rick Waugh urged the Canadian government to expand the scope of its review to encompass international competitiveness and to move quickly to implement reforms that will ensure the continued strength of the sector.

“We strongly believe that government needs to broaden the scope of its review,” said Waugh, in a release.

“Several issues are not included in the consultation document, and we believe it would be a mistake to miss this round of reform and delay the consideration of significant issues until 2011. It is too long a wait to address what is an eroding comparative advantage for financial institutions – a progressive and forward-looking legislative regime. Despite political challenges and tight timeframes, we must not allow ourselves to be satisfied with ‘good enough’. The sector is too important to Canadians for this round of reform to be largely a technical review, when there are real questions of international competitiveness to be addressed.”

In presenting the submission, Waugh reinforced the benefits of a strong financial system to Canadians. Banks employ almost a quarter of a million Canadians and invest more than $100 million annually in communities across the country. Last year the six largest banks paid $7.6 billion in taxes in Canada. As well, most Canadians hold bank stock, either directly or indirectly, and thave benefited from shareholder returns.

Given the importance of the sector to Canadians, Waugh cautioned against delaying essential reform. “Future economic prosperity depends on Canadian businesses having the tools and the environment here in Canada to succeed against strong competitors in key markets around the world,” he noted. “At the same time, Canadian banks need to be in a position to grow and support Canadian companies as they expand.”

In the context of the need for greater emphasis on international competitiveness, Waugh urged the government to quickly follow through on existing Bank merger initiatives.

Scotiabank’s submission also addresses issues of bank holding company regulations, foreign ownership, and the proposal to eliminate the current requirement for insurance on high ratio mortgages. The submission also outlines the Bank’s position on issues that would enhance competitiveness, improve the regulatory framework, enhance corporate governance and empower consumers.

The full text of the report can be found at www.scotiabank.com.