Canadian Bankers Association

Canadian Bankers Association

February 21, 2008 12:38 ET

Expert Panel on Securities Regulation Welcomed by Canadian Bankers Association

TORONTO, ONTARIO--(Marketwire - Feb. 21, 2008) - The Canadian Bankers Association (CBA) today welcomed the federal government's announcement of the panel to study the issue of securities regulation in Canada. The panel, chaired by the Honourable Tom Hockin, was announced today by Federal Finance Minister Jim Flaherty.

"The panel is a concrete step forward and we hope that this continued momentum on securities reform will lead to a common securities regulator," said Nancy Hughes Anthony, President and CEO of the Canadian Bankers Association. "The federal government is showing leadership and determination on this issue and we look forward to providing the panel with our views."

The CBA has long advocated for a common securities regulator that will benefit individual Canadians, entrepreneurs, and businesses (including small and medium-sized enterprises) seeking capital to grow and create jobs. The CBA produced a research study in 2007 showing that the current system of raising capital in Canada is costly and burdensome for small- and medium-sized businesses. This research demonstrates that a fragmented system of regulation increases the cost of capital for these firms. A common securities regulator is the best route to lower the cost of capital for these firms, reduce their fees and compliance costs and improve their nation-wide access to investors.

"We should all be focused on creating a Canadian advantage with our securities regulatory system," said Ms. Hughes Anthony. "We are pleased to see that this panel has been asked to develop model legislation that we hope can expedite the process of establishing a common securities regulator."

Canada is out of step with other countries around the globe which are moving ahead with securities reform. Of the 100 countries that are part of the International Organization of Securities Commissions, Canada is the only country without a common securities regulator.

The CBA research on the impact that multiple regulators have on the cost of raising capital for small businesses can be found on the CBA website at www.cba.ca.

"We are also pleased that the panel has been asked to provide advice on how Canada can move to more principles-based regulation," said Ms. Hughes Anthony. "We believe this could lead to a more competitive and flexible regulatory system."

The Canadian Bankers Association works on behalf of 54 domestic chartered banks, foreign bank subsidiaries and foreign bank branches operating in Canada and their 249,000 employees to advocate for efficient and effective public policies governing banks and to promote an understanding of the banking industry and its importance to Canadians and the Canadian economy.

Contact Information

  • Canadian Bankers Association
    Melanie Minos
    (416) 362-6093, ext. 220 or Cell: (416) 587-7733
    Email: mminos@cba.ca
    Website: www.cba.ca