IIAC is supporting the Provincial Capital Markets Act (PCMA) and Capital Markets Stability Act (CMSA) consultation drafts, which aim to avoid disruption in market activity, confusion and unnecessary costs to market participants.
The association adds the proposed Cooperative Capital Markets Regulatory System (CCMRS) will foster more efficient and globally competitive markets; provide one voice on the international stage; and enhance efficiencies by strategic priority settings.
The IIAC has provided a blueprint for these benefits.
- Ensure the transition to the PCMA is seamless to avoid additional costs for market participants.
- During the transition, no material changes can be made to existing securities laws and practices, including discretionary relief that market participants currently rely upon in the participating provinces.
- The CMSA must not impose undue regulatory burdens on capital market participants. The authority to regulate systemic risk should be used judiciously, with utmost coordination between other prudential regulators, such as OSFI and BoC.
- A simplified and transparent common set of fees needs to be developed to promote efficiency benefitting large and small dealers, and market participants.
- The policy and regulation-making process should be open, and consider the perspectives, interests and concerns of market participants and investors from all of Canada.
- The governance structure will need to embed the best corporate governance practices, including clearly articulated guidelines and procedures for selection and appointment of the Authority’s board members and senior officials, based on merit and expertise.
IIAC concerns with the consultative drafts
Ian Russell, IIAC president and CEO notes there are concerns with the Acts that need to be addressed. For instance, how the new regulatory system will interact with non-participating jurisdictions and IIROC.
“Consideration must be given to providing guidance on the role that a newly formed Authority would play with the non-participating jurisdictions. In addition, as our members’ primary regulator is IIROC, we are concerned about how the existing oversight of Self-Regulatory Organizations will be maintained and what the interplay will be with the oversight and recognition provided by the non-participating jurisdictions.”