The federal government’s most recent initiative to create a cooperative capital markets regulatory system for Canada took another step forward today with the announcement that New Brunswick and Saskatchewan had signed on to the existing agreement to join the Cooperative Capital Markets Regulatory System.
New Brunswick and Saskatchewan join Ontario and British Columbia as parties to an agreement in principle (the “Agreement”) which calls for the development of, among other things:
- uniform legislation for each participating province or territory that would address all capital markets regulatory matters under provincial or territorial jurisdiction;
- complementary federal legislation to apply across Canada that would address criminal matters and those relating to systemic risk and national data collection; and
- a single capital markets regulator comprising of an expert board of directors, a regulatory division and an adjudicative tribunal.
Under this model, it is proposed that the new cooperative regulator would administer a single set of regulations under the authority delegated to it by the participating jurisdictions, while being responsible for regulatory enforcement and adjudicative functions, as well as identifying and managing systemic risk. The common regulator is also contemplated to have a regulatory office in each participating jurisdiction that would provide the same range of services that are currently provided by provincial and territorial securities regulators while maintaining a single fee structure.Continue Reading...