Expert Panel calls for single securities regulator
Following almost a year of study and consultation, the Expert Panel on Securities Regulation released its Final Report and Recommendations, entitled “Creating an Advantage in Global Capital Markets” on January 12, 2009. The Expert Panel, created to provide advice and recommendations to the federal Minister of Finance with respect to securities regulation, cited as its central recommendation the establishment of a single securities regulator. This new Canadian Securities Commission (CSC) would be responsible for policymaking and rulemaking, as well as the investigation and prosecution of regulatory offences.
The Expert Panel also recommended the creation of an independent adjudicative tribunal. Recommendations also included providing the CSC with the power to order investor compensation in cases of legal violations by registrants and the establishment of special independent panels to allow for input by investors and small reporting issuers in the development of policy.
A draft national Securities Act, which could serve as a starting point for securities legislation to govern Canadian capital markets should the Expert Panel's recommendations be adopted, was also published. The Expert Panel has recommended a voluntary structure that would give provinces and territories the option to participate in the national regime. The Expert Panel also recommended consideration of a second level of opt-in that would permit registrants and others resident in provinces and territories that do not participate to opt-in individually and be governed exclusively by the national regime.
