Jim Flaherty, the Canadian Finance Minister, said on Wednesday that Canada will create a national securities regulator made up of “willing” provinces to replace Canada’s current patchwork system. Only the province of Quebec has indicated that is does not wish to be a partner in the national plan.
The “flaw we have in our system is that we still have 13 securities regulators. So we are going to go ahead and create a Canadian securities regulator,” Mr Flaherty said following Wednesday’s Throne speech. “We are going to do this with our willing partners — which include some of the provinces. Those who choose not to [work with Ottawa] will not join.”
The Financial Post reports that a national regulator has been discussed for 40 years, but it has taken the current financial crisis to help get it accomplished. It is expected to reduce costs and bureaucracy and bolster Canada’s international reputation. As previously discussed here, it is also intended to improve Canada’s ability to crack down on market crimes, and improve widespread negative views of the current status of the enforcement of securities law in Canada.
Quebec, a longtime opponent of a single national securities regulator, will reportedly “maintain a separate and independent stock market watchdog.”