On March 29, 2016, Alberta Finance Minister Joe Ceci formally
announced that the Province of Alberta would not join British
Columbia, Saskatchewan, Ontario, and other jurisdictions in the
creation of a national securities regulator. Minister Ceci's
announcement re-affirms the position taken by previous Alberta
The Cooperative Capital Markets Regulatory System was first
proposed on September 19, 2013, in an effort to create a single
securities regulatory body for Canada (see
Federal, Ontario and BC Governments Announce New Securities
Regulator). Initially spearheaded by the provincial governments
of Ontario and British Columbia and the federal government,
participating jurisdictions now also include Saskatchewan, New
Brunswick, Prince Edward Island and the Yukon. Quebec and Alberta
have formally rejected the Cooperative System, while Manitoba,
Newfoundland, Nova Scotia, the Northwest Territories and Nunavut
have not yet announced a definitive stance.
In announcing Alberta's decision, Minister Ceci noted that
Alberta has a unique and specialized capital market, which requires
local and specialized knowledge from its securities regulator. The
new chair of the Alberta Securities Commission (ASC), Stan
Magidson, echoed that sentiment on the day of his appointment by
stating that there is energy regulation and disclosure expertise in
Alberta which make it best suited to regulate its own securities
market. Minister Ceci and Mr. Magidson both expressed support for
pursuing national harmonization through the current passport system
developed by the Canadian Securities Administrators, where an
issuer may access markets in multiple jurisdictions in Canada by
dealing with one principal regulator.
The practical effect of Alberta not participating in the
Cooperative System remains to be seen. Draft legislation and
regulations have been published by the participating jurisdictions
with the aim of having the regulatory system operational in the
fall of 2016 (see
Cooperative Capital Markets System Publishes Revised Draft
Legislation and Draft Regulations), but details of the
interface between the Cooperative System and any non-participating
jurisdictions, such as Alberta, have not been announced.
Many Alberta issuers rely on the passport system to issue
securities across Canada, other than in Ontario, which does not
participate in the passport system. These issuers therefore often
deal directly with both the ASC and the Ontario Securities
Commission. If the Cooperative System is adopted, many Alberta
issuers would be required to comply with both local rules and the
Cooperative System, which introduces many changes to the securities
laws currently existing in Ontario and other participating
jurisdictions. Alberta issuers should continue to monitor
developments regarding the Cooperative System over the coming
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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).