The battle over the question of whether the federal government can claim jurisdiction in securities regulation is heating up, and a handful of industry organizations are seeking intervener status in the case before the Supreme Court of Canada.
The case, which is scheduled to be heard April 13 and 14 of 2011, was brought by the federal Department of Finance to confirm that the federal government can claim jurisdiction over securities regulation. So far, the attorney generals of eight provinces have been granted standing at the hearing, with an application from the attorney general of Ontario still pending.
Advocacy groups, the Canadian Foundation for Advancement of Investor Rights, the Canadian Coalition for Good Governance, and the Mouvement d’Éducation et de Défense des Actionnaires are also seeking intervener status.
Industry organizations that have applied for status to intervene include the Investment Industry Association of Canada, Canadian Bankers Association, Barreau du Québec, and Ontario Teachers’ Pension Plan. The outcomes of these applications are still pending.
Earlier this year, the Canadian Securities Transition Office proposed draft securities legislation for the new regulator, and yesterday it unveiled its transition plan, which foresees the new authority launching in July 2012.
Alberta and Quebec, both of which have been granted status in the case, have actively opposed the creation of a national regulator, and have asked their own courts to weigh in on the matter, too.
On Wednesday, Raymond Bachand, Quebec’s finance minister, reiterated that opposition, saying, “The proposed transition plan does not alter Quebec’s position. The government and the business community will continue to oppose the federal government’s plan with a strong, united voice.”
“The new structure will be just as decentralized as the existing Canada-wide system and confirms the importance of the regulator’s proximity with reporting issuers. I see this as an admission that the existing structure works well,” he added.
“The federal plan is an unnecessary and unacceptable invasion of provincial jurisdiction over property and civil rights. The only real difference with provincial legislation is the power assumed by the federal minister.”
IE
Many groups seek intervener status in single regulator court case
CSTO transition plan does not alter Quebec’s opposition
- By: James Langton
- July 14, 2010 July 14, 2010
- 15:40