National securities watchdog on the way
OTTAWA–Ottawa is moving forward on plans for a national securities regulator but will let provinces opt out if they oppose the scheme.
In yesterday’s throne speech, the federal Conservatives echoed their pledge to institute a single national stock market watchdog in a bid to replace the patchwork of provincial regulators in place now.
Finance Minister Jim Flaherty cited the economic volatility and instability as one justification to move ahead with the idea.
"Canada’s system is held out and looked on as a model around the world but the flaw we have in our system is the fact that we still have 13 securities regulators. So we are going to go ahead and create a Canadian securities regulator," Flaherty said.
However, the finance minister noted the opposition to the plan from Quebec, which wants to maintain its own independent regulator fast cash in one hour.
"We’re going to do this with our willing partners … Those who do not choose to, will not join," he said.
Ontario is one of the provinces supporting the idea of a single regulator.
Flaherty said he will consult with the provinces on establishing a Canadian securities regulator early next year after a report from Tom Hockin, a former minister in the Mulroney government who was asked to head a panel on how a national stock market regulator would work.
Flaherty has made creation of a single regulator a priority since becoming finance minister in January 2006.
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