The launch of the Cooperative Capital Markets Regulatory System (CCMR) has been delayed one year and is now expected to begin operation in the fall of 2016. The federal government announced its commitment to implementing the CCMR in the 2015 federal budget. The below excerpt is from pages 254 and 255 of the budget.
It was also recently announced that Neil de Gelder (British Columbia), Susan Wolburgh Jenah (Ontario), Grant J. Kook (Saskatchewan), David G. Barry (New Brunswick) and The Honourable Michael Wilson (Canada) are the members of the nominating committee that will recommend candidates for the CCMR’s initial board of directors.
Excerpt from the 2015 Federal Budget
Cooperative Capital Markets Regulatory System
The Government is moving forward to implement the Cooperative Capital Markets Regulatory System, in partnership with provinces and territories.
Following additional public consultations, the Government intends to take legislative actions to strengthen Canada’s capital markets framework and better protect investors. In addition, the Government intends to make legislative amendments to fight white-collar crime that will allow the Financial Transactions and Reports Analysis Centre of Canada to disclose relevant information to provincial securities regulators.
British Columbia, Ontario, Saskatchewan, New Brunswick, Prince Edward Island, Yukon and Canada are jointly engaged in the creation of the Cooperative Capital Markets Regulatory System. The Cooperative System is designed to preserve local perspectives while streamlining the capital markets regulatory framework to enhance Canada’s financial services sector, support efficient capital markets and manage systemic risk. Participating jurisdictions are making progress on refining a federal-provincial legislative framework and developing a harmonized regulatory rulebook. Participating jurisdictions will release this summer updated consultation draft capital markets legislation, along with draft initial regulations, for public comment. The responsible Ministers of the participating jurisdictions will appoint in the coming months an initial board of directors for the new Capital Markets Regulatory Authority. Along with its provincial and territorial partners, the Government continues to invite all provinces and territories to participate in the implementation of the Cooperative System. If jurisdictions choose to operate outside the Cooperative System, they will have a constructive partner in the new Authority, with the ultimate goal of providing efficient access to capital markets.
The Benefits of the Cooperative System
- Uniform provincial capital markets legislation to deal with provincial aspects of securities regulation.
- Complementary federal capital markets legislation to address criminal matters and systemic risk related to capital markets.
- A jointly established Capital Markets Regulatory Authority to administer both the provincial and federal legislation.
- A single set of regulations designed to protect investors, while supporting responsive, efficient and innovative capital markets.
- Priorities set on a national basis based on a single executive team, organized throughout the country, and accountable to an expert board of directors.
- Single filing of prospectus with review conducted by the local office of the capital markets regulatory authority.
- Fees established to fund the regulatory system, not to raise general revenue for participating governments.
This article contains general information only and is not intended to provide a legal opinion or advice. Please consult a lawyer or compliance advisor for matters related to your situation before relying on any of the statements made in this article.