Federal Minister of Finance Jim Flaherty, along with
his counterparts in Ontario and British Columbia, today proposed the establishment of a single,
cooperative securities regulator to administer a single
set of regulations designed to protect investors, support efficient
capital markets and manage systemic risk in the participating
jurisdictions. The regulator, with an executive head office in
Toronto and a nationally integrated executive management team,
would be directed by a board of independent directors and overseen
by a Council of Ministers of all participating jurisdictions. All
other provinces and territories are also being invited to
participate in the proposed system.
Under the proposed plan, among other things: (i) a uniform Act
would be adopted by each participating jurisdiction; (ii) the
regulator would administer a single set of regulations; (iii) a
federal Act would address criminal matters and issues relating to
system risk; (iv) the regulator would administer the provincial and
federal Acts; (v) regulatory offices would be located in each
participating province; and (vi) a single fee structure would be
designed to allow the self-funding of the regulator.
Of particular interest, the inclusion of federal legislation to
cover systemic risk and national data collection would suggest that
derivatives may be regulated under the federal part of the scheme.
This would be consistent with the Supreme Court's finding in
the reference case regarding the previously proposed
national Securities Act that the provisions of
that proposed Act relating to derivatives appeared
directed at systemic risk.
According to the release, in pooling provincial and federal
expertise, the regulator would "contribute to a stronger
economy, improve investor protection and better respond to
increasingly competitive, dynamic and global capital
The case of Harbouredge Mortgage v Powell is a classic example whereby a secured party registered a financing statement which contained an error in the debtor's name, and therefore lost their claim as a secured creditor.
The Supreme Court of Canada has provided guidance to financial institutions holding otherwise "highly sensitive" information to determine when that information is somewhat less sensitive, such that it can be disclosed.
The purpose of the Clearing Rule is to impose central counterparty clearing of certain OTC derivative transactions in order to mitigate counterparty risk in the derivatives market and to increase financial stability.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).