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Ottawa, September 19, 2013
The Ministers of Finance of British Columbia, Ontario and Canada agreed today to establish a cooperative capital markets regulatory system and invite all provinces and territories to participate in the proposed system.
The cooperative securities regulator will better protect investors, enhance Canada’s financial services sector, support efficient capital markets and manage systemic risk. It will feature a single regulator administering a single set of regulations and be operationally independent and self-funded through a single set of fees. It will be directed by an expert board of independent directors with broad capital markets-related expertise. A Council of Ministers of all participating jurisdictions will oversee the cooperative system.
The regulator will have an executive head office in Toronto and a nationally integrated executive management team, ensuring policy leadership from regulatory offices.
The regulatory offices will provide the expertise and capacity needed to serve market participants in all participating jurisdictions.
The Ministers agreed that the cooperative system will preserve the elements of the current system that work well, including the ability to weigh and consider local perspectives, and will achieve needed reforms within a national context.
By pooling provincial and federal expertise, the cooperative securities regulator will contribute to a stronger economy, improve investor protection and better respond to increasingly competitive, dynamic and global capital markets.
“B.C. has consistently supported the concept of a cooperative securities regulatory system that respects constitutional jurisdiction, builds on the strong foundation of the current system, improves enforcement, and is responsive to regional markets such as B.C.’s venture capital markets,” said Michael de Jong, B.C. Minister of Finance. “This agreement meets those principles and priorities. I hope other jurisdictions give serious consideration to joining the cooperative system.”
“A cooperative securities regulator based in Toronto will provide increased protection for investors, strengthen the competitiveness of Canada’s economy, lower costs and enhance the reputation of Canada’s financial services sector leading to more jobs and growth,” said Charles Sousa, Ontario Minister of Finance. “Ontario has for many years taken a leadership role in the creation of a cooperative securities regulator because it is in the best interests of all provinces and will help our businesses grow.”
“This is a commendable example of cooperative federalism working to address today’s market realities,” said Minister Flaherty. “All of us listened and we came together, putting aside our differences to focus on a common goal: to modernize our capital markets and to make them more competitive. I want to thank Ministers de Jong and Sousa for their leadership on this initiative.”
