Canadian Bankers Association

Canadian Bankers Association

January 11, 2011 09:04 ET

Canadian Bankers Association Files Factum With Supreme Court in Support of a National Securities Regulator

TORONTO, ONTARIO--(Marketwire - Jan. 11, 2011) - The Canadian Bankers Association (CBA) has filed a factum with the Supreme Court of Canada supporting the federal government's move to create a national securities regulator through the Canadian Securities Act

In its factum, the CBA argues that the federal government has the power to "assure the integrity and competitiveness of Canada's capital markets and to create a comprehensive and coordinated national securities enforcement regime".

"A single, Canadian regulator will offer improved investor protection and greater efficiencies in capital markets and will reduce the cost of raising capital for businesses of all sizes across the country," said Nancy Hughes Anthony, President and Chief Executive Officer, Canadian Bankers Association. "For many years the CBA has advocated for a more efficient and effective securities regulation, with the strong belief that a national regulator would benefit all Canadians."

The CBA's factum points out that three independent committees of experts – the Wise Persons' Committee (2003), the Crawford Panel (2006) and the Hockin Panel (2009) – all concluded that our fragmented system of provincial securities regulation is a national economic concern that warrants a national regulator, identifying a number of key problems with the current system:

  • There is inadequate enforcement and inconsistent investor protection across Canada, which the Crawford Panel called a "domestic and international embarrassment for Canada".
  • Capital markets are increasingly national and international, and have been for years.
  • Provincial securities regulation is not integrated into the regulation of systemic risk, and there is no national entity responsible for the stability of our capital markets.
  • Multiple provincial regulators increase regulatory costs for businesses and discourage investment in Canada.
  • There has been a slow regulatory response to the changing global marketplace because consensus among 13 autonomous provincial regulators is needed to develop new policies.
  • Canada is the only industrialized country without a national securities regulator and lacks a national voice on the international stage.

The CBA has intervener status in the Canada Securities Act case and the Supreme Court of Canada is scheduled to hear arguments in mid-April, 2011. The CBA's factum can be found at this link: http://www.cba.ca/contents/files/misc/msc_20110110_scc_factum_en.pdf.

The Canadian Bankers Association works on behalf of 51 domestic banks, foreign bank subsidiaries and foreign bank branches operating in Canada and their 260,000 employees. The CBA advocates for effective public policies that contribute to a sound, successful banking system that benefits Canadians and Canada's economy. The Association also promotes financial literacy to help Canadians make informed financial decisions. www.cba.ca.

Follow the CBA on Twitter: @CdnBankers

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