“Study Says No Need for National Securities Regulator” IIRP

Oct 14, 2011 | Government News

The needs and interests of Canadians would not be better served by a national securities regulator, according to a new study published by the Institute for Research on Public Policy (IRPP).

Later this year, the Supreme Court is expected to rule on the constitutionality of establishing a single national securities regulator to replace the existing, provincial regulatory system. Pierre Lortie, author of Securities Regulation in Canada: The Case for Effectiveness, says that independent of whether the move would be constitutional, an equally important question is whether such a change would be sound public policy.

He assesses the performance of Canada’s decentralized securities regulation structure along a number of dimensions, and concludes that it compares favourably with those of other countries. Lortie attributes this to the high degree of coordination among provincial regulatory authorities by means of, for example, reporting systems that are national in scope, and nationally harmonized standards that cover areas like mutual fund regulation and takeover bids.

Another advantage of the current system is that it can cater to regional economic differences – something a national regulator would have neither the ability nor the incentive to do as effectively as the provincial regulators. This is particularly important in Canada, where small firms depend on regional exchanges to raise capital much more than do other countries.

“Moving to a national securities regulator would undermine many of the benefits of the status quo without bringing any tangible economic benefits to the table,” concludes Lortie.

Thomas A. Hockin, who was the chair of the 2009 expert panel that recommended a national securities regulator, presents a decidedly different perspective in his accompanying commentary, Arguments for a National Securities Regulator.

Securities Regulation in Canada: The Case for Effectiveness, by Pierre Lortie, and the commentary by Thomas A. Hockin:

Summary | Detailed summary | Interview | Study 

For more details or to schedule an interview, please contact the IRPP.

To receive our monthly bulletin Thinking Ahead by e-mail, please subscribe to the IRPP e-distribution service by visiting our Web site.

Media contact: Nicola Johnston Tel: 514-787-0737 Cell: 514-235-8308

Similar Posts

Advertisement

advertisement advertisement

SOCIAL

This year, CME Manitoba is offering 𝗧𝗛𝗥𝗘𝗘 𝗦𝗖𝗛𝗢𝗟𝗔𝗥𝗦𝗛𝗜𝗣𝗦 to students pursuing a potential career in manufacturing. https://bit.ly/3Sa5PsP

Do you have a university student at home? Applications accepted until 𝗝𝗮𝗻𝘂𝗮𝗿𝘆 𝟭𝟱, 𝟮𝟬𝟮𝟯!

Our region needs to be able to safely and efficiently get people to jobs and goods to market, as well as provide opportunities for residents to advance their careers.

That's why Plan20-50.

To download the plan and send us your feedback, visit http://20to50.ca