Federal Minister of Finance Jim Flaherty, along with his counterparts in Ontario and British Columbia, today proposed the establishment of a single, cooperative securities regulator to administer a single set of regulations designed to protect investors, support efficient capital markets and manage systemic risk in the participating jurisdictions. The regulator, with an executive head office in Toronto and a nationally integrated executive management team, would be directed by a board of independent directors and overseen by a Council of Ministers of all participating jurisdictions. All other provinces and territories are also being invited to participate in the proposed system.
Under the proposed plan, among other things: (i) a uniform Act would be adopted by each participating jurisdiction; (ii) the regulator would administer a single set of regulations; (iii) a federal Act would address criminal matters and issues relating to system risk; (iv) the regulator would administer the provincial and federal Acts; (v) regulatory offices would be located in each participating province; and (vi) a single fee structure would be designed to allow the self-funding of the regulator.
According to the release, in pooling provincial and federal expertise, the regulator would "contribute to a stronger economy, improve investor protection and better respond to increasingly competitive, dynamic and global capital markets."