Proposed new powers would give regulatory authorities powers worthy of a North Korea or China
Anyone in the business community who draws breath will be aware that for some time now the federal government has been on the warpath to eliminate the provincially-based system of securities regulation and substitute a single national regulator, the CCMR. Unfortunately for the feds, in 2011 the Supreme Court ruled that the federal government does not have the constitutional power to enact a comprehensive scheme of securities regulation. The Court, however, did suggest that the feds have the power to enact securities laws designed to address nation-wide systemic risks, and to collect securities market information on a national basis.
Following this decision, the federal government and Ontario spearheaded an effort to get as many provinces as possible to sign on to a common piece of legislation known as the “Provincial Capital Markets Act” (PCMA) and to delegate their respective authorities to administer this statute to a common regulator – the Capital Markets Regulatory Authority (CMRA).
Jeffrey MacIntosh – Special to Financial Post – December 9, 2014.
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I don’t like the sounds of this. It’s be nice to see deregulation in Canada not the other way around
Jason, I hear you. One thing though that does make sense about this is that is harmonizes a ton of paperwork and applications to satisfy securities regulations. if you are a company trying to raise capital through private placement or the public markets, instead of going through all the expense and time it takes to meet requirements in each province you will be able to do it once with the CCMR. So it has the potential to massive reduce the cost of raising capital.