Forgive me my ignorance, but my understanding is that licensing and regulating insurance and securities was a provincial responsibility.
Now, the National Post is reporting that the Federal Government is leaning towards one federal regulator. I haven’t decided whether this is a good or bad thing, but it is yet again another area where a federal government decides to intrude on provincial responsibilities without reopening the Constitution.
This must stop. Besides, we’d be better off letting the free market work, instead of rethinking it.
After the Speech from the Throne last November, Mr. Flaherty said Ottawa would forge ahead with "willing" provinces to create a national securities regulator.
Indeed, the rules governing the new regulator will give provinces the option not to participate.
Quebec has long objected to the national scheme, and Alberta and British Columbia have been lukewarm about joining such a body.
However, the regulator's proposed structure would allow publicly traded companies based in the no-go provinces the ability to bypass the provincial watchdogs and file their documents -- such as prospectuses, financial statements and proxy circulars -- with the national regulator. This is likely to be addressed in the legislation, because currently companies need to file in each province if they want to sell shares to its residents, including large institutional buyers such as the Caisse de dépôt et placement du Quebec.
In an attempt to appease provinces, the national regulator would keep regional offices in provinces that have certain expertise -- such as Alberta with energy and British Columbia with mining.
Just what we need. Another Super Govt organization with split federal/provincial responsibilities/organizations. Whatever “savings” businesses will find in dealing with one regulator will be passed down to us consumers as taxpayers paying fore more bureaucrats to run things. It doesn’t really work that well in the US with the SEC…
Posts
No comments:
Post a Comment