Feds initiate transition to national regulator

The Transition Office will lead all aspects of the transition to a national regulator, including the development of a federal Securities Act, collaborating with provinces and territories, and developing and implementing a transition plan with respect to organizational and administrative matters.

“As part of Canada’s Economic Action Plan, we are acting to strengthen and grow Canada’s capital markets in the long term through consistent regulation,” Flaherty said in a statement. “With the leadership of the Transition Office, the Canadian securities regulator will enable Canada to respond swiftly and efficiently to developments in the financial sector and speak with one voice internationally. It will also provide clearer national accountability, strengthen enforcement, better serve the needs of investors, and eliminate barriers within our own country.”

The Finance Minister announced that Doug Hyndman, the chair of the British Columbia Securities Commission will be the chair and CEO of the Transition Office. Hyndman will also be the chair of the Advisory Committee of Participating Provinces and Territories, an interface for participating provinces and territories. The Transition Office will begin operations July 13, 2009.

“I am eager to begin work on setting the course for a Canadian securities regulator. My aim is to create the best securities regulator in the world, following best global practices for independence, governance, and accountability. This includes ensuring that Canada has strong and cost-effective investor protection delivered through regional offices that are connected to regional economies and integrated in a national structure,” Hyndman says.

Bryan Davies the chair of the Canada Deposit Insurance Corporation has been tapped as vice-chair of the Transition Office.

Davies’ key areas of responsibility will include stakeholder consultations, integration of the Canadian securities regulator into the legislation governing Canada’s financial stability framework, and acting as vice-chair of the Advisory Committee. Davies will also continue as Chair of the Canada Deposit Insurance Corporation, a part-time position.

“Having the Canadian securities regulator alongside the other financial regulators, at one table, will improve policy coordination and the responsiveness of Canada’s financial regulatory framework to global challenges,” Davies says. “We will be able to better identify risks on the horizon and work together to address them. Ensuring that the new Canadian securities regulator is properly incorporated into Canada’s financial stability framework is a key priority for me.”

(06/22/09)

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