The Federal Government of Canada together with two of its provinces would be setting up a common securities regulatory agency as a first step towards the replacement of the current system of provincial agencies. The goal is to create a more efficient national markets watchdog for the whole of Canada.
According to the Canada's Federal Finance Minister Jim Flaherty and his state counterparts in Ontario and British Colombia announced details of the planned unified regulatory agency on Thursday. Ontario and British Columbia is home to nearly two thirds of the capital markets in the North American country.
Ottawa had been trying for decades to persuade Canada's 10 provinces and three territories to create an institution akin to the US Securities and Exchange Commission. Flaherty had lobbied hard for the agency since he was installed as finance minister back in 2006 through the election of the current Conservative government.
The new institution is hoped to be the answer to improve the perception that Canada is lax on white collar crime. This criticism came from the International Monetary Fund for being the only advanced economy that does not have a national capital markets regulator.
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