Trade shock offers Canada a chance to kill some bad old ideas – Bloomberg Trade shock offers Canada a chance to kill some bad old ideas – Bloomberg

Amid the lingering threat of 25% tariffs from the United States, Canada’s largest trading partner, Canadian politicians and businesses alike are looking for ways to increase economic competitiveness and domestic self-sufficiency. Interprovincial trade barriers, in particular, are in the crosshairs, and Osler partner Lawrence Ritchie says we should also take this opportunity to examine major reforms to capital markets.

“It’s inconceivable that capital markets and the impediments to having consistent regulation across the country wouldn’t be part of that,” Larry says, pointing specifically to the idea of a national securities regulator — long considered and debated, but never realized.

Each province and territory has its own securities regulatory body, but the country lacks a single body overseeing all of its securities markets. That makes Canada unique among the Group of 20 nations.

While the Canadian Securities Administrators oversee broadly harmonized rules and a “passport” system that allows companies in one province to issue securities whose applications are recognized in others, Ontario is not a part of that system. The passport system has been a significant improvement over the old model, Larry says, but it doesn’t address added compliance costs, the duplication of resources or, notably, the potential for better enforcement.

“Wrongdoing in the capital markets is not limited by borders — especially provincial borders,” he says.

After several decades of failed attempts, a 2018 Supreme Court of Canada decision cleared the way for a national regulatory body akin to the U.S. Securities and Exchange Commission. A lack of political will, however, meant that idea fizzled out again within a few years.

Now, with the push to “reexamine every opportunity to become more competitive and self-sufficient,” Larry says, “I think it has to be put back on the table.”

You can read the full article, “Trade shock offers Canada a chance to kill some bad old ideas,” on the Bloomberg website.