The Investment Industry Association of Canada (IIAC) yesterday announced its support for the proposed rule implementing the second phase of the securities regulation passport system.

The IIAC indicates that it will review the details of the passport model and provide feedback to the participating jurisdictions. Under the passport system, market participants will be able to access multiple jurisdictions by dealing with one regulator and operating under a harmonized set of provincial and national regulations. However, the biggest jurisdiction, Ontario, is not participating in the plan.

“The passport system is a positive first interim step towards making the Canadian markets more efficient and accessible. To maximize the benefits of the passport system, and create the most effective and robust outcome for the Canadian marketplace, we encourage the Ontario Securities Commission to participate in the passport system,” said Ian Russell, president and CEO of the IIAC, in a news release.

“The next step in this evolution is to reform the contents of the underlying rules. To build an effective and globally competitive system, the CSA must create streamlined regulations, underpinned by principles,” he added.