Finance minister Jim Flaherty has told the Canadian Press the federal government has decided to drop plans for a national securities regulator in Canada.
On December 22, 2011, the Supreme Court of Canada ruled that securities regulation should be left to the provinces.
The federal government has been trying for 10 years to create a single Canadian securities regulator to provide investor protection, promote fair and competitive capital markets and help ensure the stability of Canada’s financial system.
Ultimately, the Supreme Court ruled the proposed act “overreaches general national concerns.”
Reports indicate Flaherty said he was still hoping to create a national organization that would monitor what he described as systemic risks to financial markets.
The minister made the remarks in an interview at the Davos economic summit in Switzerland.
Jennifer Harrison
@JHarrisonBIV