TORONTO, – While expressing extreme disappointment with today’s Supreme Court of Canada decision that it would be unconstitutional for the federal government to proceed unilaterally with the creation of a national securities regulator, the Toronto Financial Services Alliance (TFSA) is hopeful that the federal government can reach a compromise with the provincial and territorial governments.
“Canada is the only major developed country without a unified approach to securities regulation,” said Janet Ecker, President of the TFSA, “and that puts us at a competitive disadvantage in a world where financial regulation is becoming more and more harmonized. I urge our government leaders to put good public policy first and reach a cooperative solution – as our governments have done in the past when matters of vital national interest have arisen.”
Rejecting the notion that “if it ain’t broke, don’t fix it,” Ms. Ecker said the multiplicity of securities regulators in Canada and the attendant costs to businesses is a tangible impediment to attracting international businesses to Canada. “It comes up often in the discussions I have when I travel abroad to promote Toronto as a global financial hub,” Ms. Ecker said.
“We have a great reputation internationally in financial services, but the one negative that keeps being raised is the lack of a national securities regulator and our inability, as a nation, to speak with one voice on matters of securities regulation.”
She noted, however, that she is confident that the provinces and territories appreciate the importance of the issue and hopeful that they will move quickly to find a solution – “a Canadian solution” – to the impasse.
“Today’s decision was an important first step,” said Ms. Ecker, “and I thank Minister Flaherty and Minister Duncan for putting the matter before the Court. At least now we know what we need to do to resolve the matter.”
The TFSA president urged the first ministers to meet as quickly as possible in the New Year to address the issue.
About the TFSA:
The Toronto Financial Services Alliance is a public/private initiative whose mandate is to enhance and promote the long-term competitiveness of Toronto as a premier North American financial services centre. Its membership encompasses core financial services companies – banks, brokerages, investment fund managers, insurance companies – as well as partner sectors – accounting, law and education. The TFSA was created in 2001 by the financial services industry, in partnership with the City of Toronto and with the support of the federal and provincial governments. For more information, please check our Website at TFSA.ca.
