Canada: financial regulation reform - proposed Securities Act published

The Department of Finance yesterday published a copy of the proposed Canadian Securities Act: see here (html) or here (pdf). The purpose of the Act is to bring about significant reform, most notably through the creation of a national securities regulator - the Canadian Securities Regulatory Authority (CSRA) - with oversight over capital markets. At present there are separate securities regulators (and securities legislation) in the provinces and territories.

The CSRA's objectives include:

• Protecting investors from unfair, improper or fraudulent practices.
• Fostering fair, efficient and competitive capital markets in which the public has confidence.
• Contributing, as part of the Canadian financial regulatory framework, to the integrity and stability of the financial system.

The Government's intention is that the CSRA should be established and operating across participating provinces and territories within three years. This will require the provinces and territories to opt-in. The transition is being led by the Securities Transition Office and a transition plan will be published in July. Meanwhile, the Government has referred the Act to the Supreme Court of Canada for an opinion as to whether it falls within the legislative authority of Canada's Parliament.

An overview of the proposed Act is available here and further information is available here. The Government's proposals build on the recommendations of the Expert Panel on Securities Regulation, which published its final report in 2009: see here.