March 21, 2018
With the deadline for the implementation of legislation for the creation of a national securities regulator fast approaching, experts are divided as to whether the timeline is going to be met. According to a recent article in the The Globe and Mail by reporter Alexandra Posadzki, the plan to establish a co-operative Canadian regulator – also known as the Capital Markets Regulatory Authority (CMRA) – has faced many hurdles, including court cases and disagreements between the provinces, with the resulting delay threatening its successful execution. Currently, five provinces and one territory – Ontario, British Columbia, Saskatchewan, Prince Edward Island, New Brunswick and the Yukon – are on board with the plan, while Alberta and Quebec oppose it. In addition, the constitutionality of the proposed model is being challenged at the Supreme Court and the timing of a ruling is unknown.
Some observers argue that the plan for consolidation is running out of steam and believe that it’s unlikely that a national securities regulator will be established this year, as planned. However, other experts, like Larry Ritchie, a partner in Osler’s Litigation Department and Chair of the firm’s Risk Management and Crisis Response national practice, disagree. Larry was involved in an earlier effort to establish a national regulator and says that even a negative ruling from the court doesn’t have to mean the end of the current plan – it might just mean that the legislation has to be revised to take into account the decision.
“But if they get a positive ruling,” he continues, “that could give a needed push to the initiative.”
If you subscribe to The Globe and Mail, you can learn more by reading the full article “Implementation of national securities regulator questioned as summer deadline nears” by Alexandra Posadzki in the March 21, 2018 edition.