The Honourable Gordon Wyant, Saskatchewan’s Minister of Justice and Attorney General, and the Honourable Troy Lifford, New Brunswick’s Minister of Justice, today signed an agreement to join the Cooperative Capital Markets Regulatory System. The Honourable Joe Oliver, Canada’s Minister of Finance, the Honourable Michael de Jong, British Columbia’s Minister of Finance, and the Honourable Charles Sousa, Ontario’s Minister of Finance, welcomed their participation in the Cooperative System and repeated the invitation to all provinces and territories to join this important project.
Today’s announcement follows on the September 19, 2013 agreement in principle between the Governments of British Columbia, Ontario and Canada to jointly establish a Cooperative Capital Markets Regulatory System.
The Cooperative Capital Markets Regulatory System will strengthen Canada’s capital markets by providing better protection to investors, enhancing Canada’s financial services sector, and managing systemic risk. A common regulator will administer a single set of regulations, reducing red tape for businesses, and will be self-funded through a single set of fees. It will be directed by an independent board of directors with extensive capital markets-related expertise. A Council of Ministers of all participating jurisdictions will oversee the cooperative system.
The Cooperative System is about balance – preserving local perspectives while bringing about much-needed reform nationally. It will have a regulatory office in every participating province, each with the expertise to serve that jurisdiction, and in accordance with provincial language laws.
Through an amended agreement in principle, the Ministers have agreed that there would be two additional deputy chief regulators to accommodate the participation of smaller jurisdictions in the governance structure: one representing Saskatchewan, Manitoba, the Northwest Territories, Nunavut and Yukon, to the extent that they are participating jurisdictions, and another representing New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island, to the extent that they are participating jurisdictions. These would be in addition to the deputy chief regulator based in each of British Columbia and Ontario, as well as Alberta and Quebec should they choose to participate.
Further clarifications have been made in response to feedback from provinces and territories. The Ministers have agreed that each regulatory office would be led by an empowered director with the responsibility to carry out the office’s regulatory functions and contribute to the development of national policies. As well, the amended agreement in principle outlines a mechanism for the regulator to accommodate provincial economic development initiatives.
British Columbia, Ontario, Saskatchewan, New Brunswick and Canada will continue to work together to encourage the government of each remaining province and territory to participate in the Cooperative Capital Markets Regulatory System.
“We join the CMR today with Saskatchewan’s investors and businesses in mind,” said Minister Wyant. “I have been proud to work with my colleagues to continue improving on Canada’s excellent system, while ensuring that Saskatchewan’s markets are able to continue to grow and flourish.”
“Our province welcomes the opportunity to participate in a new national capital markets’ regulator and encourages other smaller jurisdictions to consider the same,” said New Brunswick's Justice Minister Troy Lifford. “This initiative will be successful because of the spirit of co-operation among all participating jurisdictions. The improvements in this amended Agreement in Principle emphasising local economic initiatives and regional differences are a testament to that end.”
“British Columbia continues to strongly support the establishment of the Cooperative Capital Markets Regulatory System because it will respect constitutional jurisdiction, build on the strong foundation of the current system, improve enforcement, and be responsive to local markets and perspectives,” said British Columbia Minister of Finance Michael de Jong. “With Saskatchewan and New Brunswick on board, we have demonstrated that there is broad-based support for much-needed reforms that improve the regulation of capital markets in Canada. I hope the remaining jurisdictions will continue to give serious consideration to joining the cooperative system.”
“The Cooperative System is based on close collaboration and partnership between provinces and territories to attract investment and foster a stronger economy across Canada,” said Minister Sousa. “Ontario welcomes the addition of Saskatchewan and New Brunswick to the Cooperative System, and I’m hopeful that today’s agreement will encourage all provinces and territories to join us in this ground-breaking initiative to help make our securities regulatory system more competitive and efficient.”
“Today’s agreement is a major step towards a single regulator, national in scope, that will enhance Canada’s capital markets,” said Minister Oliver. “The addition of Saskatchewan and New Brunswick to the Cooperative System shows our momentum. I call on all provinces and territories to embrace the spirit of nation-building and join us in forging a stronger economic partnership – creating jobs, growth, and long-term prosperity for all Canadians.”