Canada Financial Regulation
Canadian Regulatory Landscape
Individual Term Paper
Abstract
In McKay report to Expert Panel on Securities Regulation, it has been 10 years since the discussion about improvement on Canadian Regulatory Framework that indicate changes have to be done. Major and minor obstacles have been debated since which calls for action of changes. In this research I will try to explain how and why changes are needed for securities regulation in Canada in order to bring our capital market compete-able with the rest of the world while in the same time provides high securities for all the stakeholders and backed by the federal government.
Major obstacles of changes in the last 10 years
In my opinion, there are four obstacles which makes changes in Canadian security regulation are difficult which are:
1. Passport system would be sufficient
This is a system that was introduced in 2003 with the objective of allowing market participant to deal with regulator in its home province to obtain a regulatory authorization that applies automatically in other province and territories except Ontario. With this system implemented in 2008, most of the stakeholders think it will be the solution to combine all the regulation of all the provinces and create simpler, faster and cheaper regulation. Although the passport system has helped streamline the provincial and territorial regulatory regimes, the passport still lack of coordination of enforcement, effective international representation and monitoring systemic risks to Canada capital market. Furthermore, it does not resolve the issue of efficiency and accountability system in 13 provincial and territorial regulators.
2. Voluntary regime
This means that all 13 provincial and territorial in Canada are subject to voluntary option which will requires them to agree to established one national regulator in Canada. As it is explained by the department of finance of Canada “Before making a recommendation to
Individual Term Paper
Abstract
In McKay report to Expert Panel on Securities Regulation, it has been 10 years since the discussion about improvement on Canadian Regulatory Framework that indicate changes have to be done. Major and minor obstacles have been debated since which calls for action of changes. In this research I will try to explain how and why changes are needed for securities regulation in Canada in order to bring our capital market compete-able with the rest of the world while in the same time provides high securities for all the stakeholders and backed by the federal government.
Major obstacles of changes in the last 10 years
In my opinion, there are four obstacles which makes changes in Canadian security regulation are difficult which are:
1. Passport system would be sufficient
This is a system that was introduced in 2003 with the objective of allowing market participant to deal with regulator in its home province to obtain a regulatory authorization that applies automatically in other province and territories except Ontario. With this system implemented in 2008, most of the stakeholders think it will be the solution to combine all the regulation of all the provinces and create simpler, faster and cheaper regulation. Although the passport system has helped streamline the provincial and territorial regulatory regimes, the passport still lack of coordination of enforcement, effective international representation and monitoring systemic risks to Canada capital market. Furthermore, it does not resolve the issue of efficiency and accountability system in 13 provincial and territorial regulators.
2. Voluntary regime
This means that all 13 provincial and territorial in Canada are subject to voluntary option which will requires them to agree to established one national regulator in Canada. As it is explained by the department of finance of Canada “Before making a recommendation to