Securities • Issues & Advocacy

Globe and Mail, September 5, 2003

MONTREAL -- Canada's 13 securities commissions pushed ahead yesterday on a plan to harmonize the country's patchwork system of regulation, but officials insist the move isn't intended to directly undermine efforts to create a national watchdog.

The Canadian Securities Administrators, an umbrella group representing the 13 provincial and territorial regulators, announced a plan to transform itself into a more formal and structured organization, including creation of a policy co-ordination committee and the establishment of a permanent three-person secretariat in Montreal.

The CSA's aim is to co-ordinate and harmonize securities regulation across Canada and improve on the current system, not play politics by countering others who are pushing for a national securities regulator, Stephen Sibold, chairman of the both the CSA and Alberta Securities Commission, told reporters.

"It's incumbent on us to put our own house in order and maximize our effectiveness and efficiency.

"There obviously is a debate going on which I think is healthy," he added, but the outcome is to be determined by the provinces and Ottawa. "I don't think the CSA needs to wait until that outcome."

Mr. Sibold said the latest CSA initiative has been in the works for a long time and predates Ottawa's creation this year of a panel of seven "wise persons" to study ways of fixing the regime and examine the feasibility of national agency.

The CSA's plan includes the formalization of its governance structure, with the CSA chair and vice-chair elected by members for a two-year period.

Critics of harmonization -- notably Toronto Stock Exchange president Barbara Stymiest -- say it won't change the fact that Canada has an outdated system made up of 13 regulators.

TSE spokesman Steve Kee said in an interview yesterday that the CSA's approach "is a worthy contribution to what has been a thorough debate on the issue and we will continue to look at this in the context of what comes out of the wise person's committee this fall."

Pierre Godin, chairman of the Quebec Securities Commission, said at the news conference yesterday that the CSA's efforts to create a more streamlined system could help weaken the pro-national-regulator argument, but are not aimed at actually pre-empting any efforts to set up a national body.

"I am not a proponent of any national securities commission. From a Quebec perspective, we support the view that the present harmonized and decentralized system is best suited for our market," he said.

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