A single national securities regulator would save $40 million annually from the operating budgets of the combined 13 regulators currently operating in Canada, according to a study commissioned by the Investment Dealers Association of Canada.

The savings could rise to $73 million if the fees were reduced to just cover the operating cost of a single regulator says the study by Charles River Associates Canada Ltd. t

The study takes a detailed look at the costs of the current system and estimates the possible savings that could be achieved under a single regulator. It imagines a single national regulator (with a head office and four regional offices) administering one set of rules.

Based on data from other markets, the study estimates that a single national regulator would require an annual operating budget of $88.1 million to handle a market of Canada’s size. The current total budget for the 13 regulatory authorities is $128.2 million, it says. However, they collected $161.1 million in fees, so if the surpluses were squeezed out. too, the savings would almost double.

Beyond that, the study estimates that the internal labour cost to IDA firms in dealing with registration could be almost halved, dropping 46% (prior to the implementation of the National Registration Database, whose savings are unclear), saving another $1.9 million annually. This data is based on a survey of 71 IDA firms. The study says that the savings would be most significant to smaller and medium-sized IDA firms; and, that big firms would benefit most from the streamlining of registration.

The study points to savings in handling private placements, although it didn’t provide an estimate of the amount.

It also projects that TSX issuers would save about $14.2 million per year under a single regulator. The study doesn’t include the savings that could be accrued to TSX Venture issuers, mutual fund dealers and other market players.