In the Securities Act Reference, the Supreme Court of Canada rejected the federal government’s proposal to implement a national securities regulatory scheme under the oversight of a national securities regulator but stated that the federal government did have jurisdiction to regulate activities that increase or create systemic risk in Canadian financial markets.
The federal CMSA is the federal government’s response and is intended to strengthen Canada’s capacity to identify and manage capital markets systemic risk on a national basis. A comprehensive regime addressing systemic risk will be new for Canada.
It is important to note that the federal legislation proposes to regulate certain activities that provincial laws currently address or have been proposed to be addressed in the various Canadian Securities Administrators OTC Derivatives Committee consultation papers.
Margaret Grottenthaler – Strikeman Elliot – October 24, 2014.
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