CBA strongly supports recommendations from the Expert Panel on Securities Regulation
Single securities regulator needed now
For Immediate Release
January 12, 2009
Toronto, ON – The Canadian Bankers Association (CBA) today welcomed the final report from the Expert Panel on Securities Regulation, Creating an Advantage in Global Capital Markets, and strongly supports its recommendation to create a single securities regulator for Canada.
“The Expert Panel has put forward a realistic and workable plan that we strongly support. We have been debating securities regulation in Canada for decades: enough is enough. With this report the debate is over, it’s time to get this done,” said Nancy Hughes Anthony, President and CEO of the Canadian Bankers Association. “We commend the federal government for continuing to push for a single securities regulator and we strongly encourage the federal government to adopt the Panel’s recommendations and for the provinces to get on-board.”
The CBA agrees with the Panel’s conclusion that the current fragmented structure makes it difficult for Canadian securities regulators to react quickly and decisively to capital market events. As the report stated, the current system makes Canada vulnerable to market and reputational risks.
“Regulators must have the structure to deal quickly and effectively with systemic risk. The regulatory structure in Canada seems well-suited to this in all areas except securities regulation,” said Ms. Hughes Anthony. “There have always been good reasons to put a single securities regulator in place, but the current economic situation makes it more important than ever.”
Enhancing efficiency and reducing the cost of raising capital
A single securities regulator would enhance efficiency, increase confidence in the markets and allow regulators to respond more quickly to market events. Canada can no longer afford to maintain the current system of 13 securities regulators with 13 sets of regulations if it wishes to remain competitive and attract global investment dollars.
The fragmented system in Canada also has a negative impact on Canadian firms’ attempts to raise capital by imposing unnecessary costs, and this burden falls disproportionately on small- and medium-sized enterprise since there are clear economies of scale in developing and filing securities offerings.
Moreover, Canada is out of step with other countries around the globe which are moving ahead with securities reform. Of the approximately 100 countries that are represented on the International Organization of Securities Commissions, Canada is the only country without a national securities regulator.
Additional CBA information
The CBA’s July 2008 submission to the Expert Panel on Securities Regulation can be found at the following link: CBA Submission to the Expert Panel on Securities Regulation
The CBA research on the impact that multiple regulators have on the cost of raising capital for small businesses can be found here: Single Securities Regulator
The Canadian Bankers Association works on behalf of 51 domestic chartered banks, foreign bank subsidiaries and foreign bank branches operating in Canada and their 257,000 employees to advocate for efficient and effective public policies governing banks and to promote an understanding of the banking industry and its importance to Canadians and the Canadian economy.
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For more information:
Andrew Addison
Canadian Bankers Association
Tel: (416) 362-6093, ext. 220
Cell: (416) 587-7733
E-mail: aaddison@cba.ca
