After years of facing objections and obstructions from numerous stakeholders, the start of operations for a Canadian national securities regulator has been delayed until 2018. This is according to a July 22 statement from federal and provincial finance ministers.
The idea of a central regulator to which all Canadian financial service providers should report has been in the works for several years. However, because of objections raised by representatives of several provinces, as well as a 2011 Supreme Court ruling that Ottawa could not impose a common regulator on unwilling provinces, the current patchwork system of securities regulation persists.
The objections forced proponents to go for a more cooperative approach, asking provinces to voluntarily submit themselves to national regulation. So far, only Ontario, British Columbia, Saskatchewan, New Brunswick, Prince Edward Island, and Yukon have raised their hands, bringing the tally of volunteers to 6 out of 13 jurisdictions.
In their statement, the finance ministers expressed expectations that complementary federal and provincial legislation will be enacted by June 30, 2018. They also anticipate the Cooperative Capital Regulatory Authority to be operational within that same year. In 2014, Canada, Ontario, and British Columbia all said that they would get the national regulator up and running by mid-2015.
That finance ministers also appointed a 15-member board to be headed by Nova Scotia businessman William Black, even though Nova Scotia has not yet joined the scheme.
Alberta and Quebec have both refused to join the scheme for national regulation.
Feds announce a “sort-of” national securities regulator