Wednesday , October 27 2021

The judgment of the Supreme Court opens the way for a multinational securities regulator from B.C.


PNE. Finance minister Carole James said that there will be no break for local governments in their transition from paying contributions to the Medical Services Plans to a new employer's income tax. (Picture: Don Craig, row of BC files)

PNE. Finance minister Carole James reacted cautiously to the ruling of the Supreme Court.

Don Craig | Government communication

The Supreme Court of Canada ruled that the plan to create a national securities market regulator, which includes British Columbia, is constitutional.

PNE. Earlier, he took the lead in attempts to create a multinational regulator of capital markets, but Finance Minister Carole James reacted sharply to the ruling of the Supreme Court on Friday, which may open the way for the implementation of the new cooperation system.

"Our government's priority is to protect the population of British Columbia, and we believe there are opportunities for BC in the Canadian approach to capital market security and regulation." But we also know that we must advance our priority of getting BC crime, "he said. James in a written statement.

James said the province needs time to review and review the court's findings.

Canada is the only large industrialized country without a national securities market surveillance authority. Instead, each province and territory has its own securities laws and a supervisory authority.

Proponents of the national concept argue that this would eliminate duplication, reduce bureaucracy and ensure more consistent enforcement and investor protection.

James pointed to B.C.'s efforts. The government of the NDP, which took power in 2017 with the support of the Green Party after 16 years of activity of B.C. Liberal governments have already begun fighting white collar crime. The government has taken money laundering in casinos, introduced changes to discover real estate ownership, and launched a panel on money laundering in real estate.

James also ordered B.C. Securities Commission to improve the registration of penalties and improve the enforcement of financial frauds, as well as promise provincial changes to improve both. The action was the result of a post-media investigation, as a result of which more than half a billion dollars for commissions on securities lost value in the last decade, and prosecution of crimes was rare. The next Postmedia investigation in 2017 revealed money laundering at B.C. casino.

James said: "White collar crime is not easy to fix. But after years of neglect, our government is rolling up sleeves to make sure that people's investments are protected and (we are) continuing the important work of modernizing our market surveillance authority and improving their powers in law enforcement. "

The efforts to establish a national regulatory body date back half a century. Work on the latest iteration, the regulatory system for capital markets of cooperatives, began in 2013. Participants are also Ontario, Saskatchewan, New Brunswick, Prince Edward Island and Yukon, as well as the federal government.

Alberta and Quebec were opponents, and Quebec began the legal challenge that gave her a partial victory, which the federal government appealed to the Supreme Court of Canada.

The new co-operative regulation system was to enter into force this year, but the deadline was partly questioned due to legal challenges.

What are the next steps or when they can happen are unclear.

The B.C. The Securities Commission, which participates in the transition to the new system, did not respond to the request for comment on Friday.

The federal government announced on Friday that it would also carefully review the decision.

Discussions with participating provinces will continue to develop a cooperation system, said spokesman for the Ministry of Finance Pierre-Olivier Herbert in a written statement.

Ottawa will also have discussions with provinces and territories that are opposed to the cooperative system "to ensure that views and concerns continue to be shared and resolved," Herbert said.

The transition to a cooperative system includes a joint regulatory body, a board of ministers in a supervisory role, model law that provinces and territories can pass, and federal legislation to manage systemic risk, enable data collection and deal with criminal matters.

– with a Canadian Press file

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