In mid-October 2009, the federal government took additional steps to advance its objective to establish a Canadian securities regulator.
As we reported in our August 2009 issue, the federal government is pressing ahead with its plans to establish a single Canadian federal securities regulator pursuant to the recommendation of the Expert Panel on Securities Regulation in Canada in its final report, published on January 12, 2009.
On October 15, 2009, the federal Minister of Finance announced the appointment of the members of the Advisory Committee of Participating Provinces and Territories to the Canadian Securities Transition Office. Members of the Advisory Committee have been nominated by the three territories and seven of the 10 provinces — missing are Québec, Manitoba and Alberta, which oppose the establishment of a Canadian securities commission.
The Advisory Committee will provide advice to the Transition Office on the transition to a Canadian securities regulator, helping to ensure that the interests of each of the participating governments are represented.
On October 16, 2009, one day after the appointment of the Advisory Committee, the federal Minister of Justice and Attorney General of Canada announced that the Government of Canada will seek the opinion of the Supreme Court of Canada as to whether Parliament has the constitutional authority to enact and implement a federal securities regulatory regime. As part of this constitutional reference, the federal government will submit to the Supreme Court of Canada draft legislation, which is expected to be ready in spring 2010.
As we previously reported, the government of the Province of Québec announced on July 7, 2009 that it would launch a constitutional reference in the Québec Court of Appeal for an opinion with respect to the decision of the federal government to proceed with the creation of a federal securities regulator. With the October announcement of the constitutional reference to the Supreme Court of Canada, the federal government has sought to seize the initiative and move directly to the country's highest court for a determinative answer on the issue.
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.