The governments of Canada, Ontario, and B.C. announced yesterday that they are establishing a cooperative capital markets regulatory system—a voluntary system that will oversee Canada’s investment industry.
It is a major step towards the creation of a single securities regulator, and something the OCC has relentlessly pursued for years.
Canada is the world’s only major industrialized country without a single securities regulator. Under the current system, securities regulation in Canada is subject to the rules and regulations of 13 different provincial and territorial securities regulators.
Canada’s current securities regulatory structure is fragmented and inefficient, and limits our small and medium-sized businesses’ ability to tap into all of Canada’s capital markets. Given the flaws in our current system, today’s news is being warmly received by Ontario businesses.
The new body will tap into provincial and federal expertise and will be charged with supporting efficient capital markets and managing systemic risk. It will feature a single regulator administering a single set of regulations. All provinces can voluntarily participate in the new system.
Significant benefits will result from this new partnership, including improved enforcement, increased protection for investors, and lowered costs for businesses seeking to raise capital. It will also enhance the reputation of Canada and Ontario’s financial services sector and strengthen Toronto’s reputation as a international financial centre.
The new system is expected to be in place by July 1, 2015, and will have an executive head office in Toronto. The OCC will work with their provincial counterparts to increase provincial membership in the new cooperative capital markets regulatory system.
The OCC congratulates the federal Minster of Finance and his provincial counterparts in taking this important step.
Questions or comments? Contact Josh Hjartarson, VP of Policy & Government Relations.