(July 31, 2008) Canada's investment managers want the feds to end the
constitutional quagmire and establish an "opt-in" national securities
The Investment Counsel Association of Canada (ICAC) is urging the
federal government to establish a federal regulator using an "opt-in"
solution. Their rationale, as stated in their submission to the Expert
Panel on Securities Regulation, is that an opt-in option could "overcome
perpetual political and legal wrangling that has left investors at
In a submission to the Expert Panel, the ICAC suggested that the federal
government should use its power to create a separate national regulatory
system that would enable securities issuers and registrants to be
registered with and subject to the jurisdiction of a federal regulator.
Such a system would then exclude provincial jurisdiction over those
participants who opt in.
The ICAC has long advocated the need for a national securities'
regulator and has participated actively in promoting the concept. While
the organization — which represents Canadian investment management firms
with over $700 billion of assets under administration — would prefer to
see a national regulator created. As a result of federal/provincial
collaboration, it feels the country can no longer wait for governments
to solve their differences.
ICAC's submission focused on eight key advantages to the opt-in model.
These include the following:
Quickest way forward/least
Consistency in regulation
Cultivation of economic growth
Flexibility to respond to future
evolution of global markets
Reduction in costs
Strengthened influence of Canada in
Ability to address regional