Canada national regulator ruled unlawful
Friday 23 December 2011 - by Will.Henley@gfsnews.com
The court threw out legislation put forward by Prime Minister Stephen Harper and finance minister Jim Flaherty, in a move that sees responsibility for securities regulation retained by the provinces.
The federal government said the proposed legislation would also boost the country's ability to advocate a common position in international securities negotiations.
The defeat however will be a bitter blow for the finance minister, who in June 2009 first established a transition office within the Department of Finance to pave the way for the new centralised regulator.
Flaherty said at the time that the new national securities regulator would "enable Canada to respond swiftly and efficiently to developments in the financial sector and speak with one voice" on the international stage.
"It will also provide clearer national accountability, strengthen enforcement, better serve the needs of investors, and eliminate barriers within our own country," he said.
Proponents of the legislation highlighted the fact that the court seemed to recognise that there is some national jurisdiction over securities, as they remained hopeful that a national securities regulator could still be formed.
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