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CSA Responds to the Modernization Taskforce Final Report and Encourages Ontario to Adopt Passport Rule to Eliminate Unnecessary Burden

Canadian Securities Administrators | Release | Feb 12, 2021

CSA logo - CSA Responds to the Modernization Taskforce Final Report and Encourages Ontario to Adopt Passport Rule to Eliminate Unnecessary BurdenMontreal –  The securities regulatory authorities of British Columbia, Alberta, Saskatchewan, Manitoba, Québec, Nova Scotia, Prince Edward Island, New Brunswick, Newfoundland and Labrador, Nunavut, Northwest Territories and Yukon (CSA members), today published  a response to the Ontario Capital Markets Modernization Taskforce (“Taskforce”) Final Report (“Report”) issued January 22, 2021.

CSA members commend the expeditious work completed by the Taskforce which is very useful to bolster our collective reflection on how to advance the Canadian securities regulatory regime. The response outlines the CSA’s perspective on how the Government of Ontario can best achieve the recommendations while also enhancing harmonization, efficiency, responsiveness and investor protection.

“A highly harmonized securities regulatory system ensures the best possible outcomes for the Canadian capital markets,” says Louis Morisset, Chair of the CSA and President and CEO of the Autorité des marchés financiers. “Attempting to implement many of the recommendations outside of CSA mechanisms and processes would risk creating inter-jurisdictional friction and adding regulatory burden on market participants across Canada.”

See:  NCFA Response to the Modernizing Ontario’s Capital Markets Consultation Taskforce

It is imperative that all policy-development work, current and future, be subject to a robust process which not only includes countrywide public consultations with all stakeholders (both market participants and investors as well as their advocates), but also includes appropriate research and cost-benefit analysis.

Ontario remains the only jurisdiction in Canada that has not adopted passport.

Embracing passport would significantly reduce the regulatory burden for all Canadian market participants by introducing speed in regulatory decision-making and eliminating the additional costs of dealing with multiple regulators. “This can be achieved quickly and easily as the rule is already in place and would yield immediate benefits,” says Morisset.

“We urge the Ontario Finance Minister to act in the best interest of all Canadian market participants and adopt the passport rule,” says Morisset.

All CSA members have, in some form, a mission to foster fair, efficient and vibrant capital markets and this is achieved with equal emphasis on investor protection. A proposition to change the Ontario regulator’s mandate to foster capital growth without commensurate attention to investor protection is of concern and should be approached with caution. A harmful imbalance would jeopardize the CSA’s sound policy-making approach and introduce risk of disharmonization.

Read the CSA members’ full response to the Ontario Capital Markets Modernization Taskforce Final Report --> here


NCFA Jan 2018 resize - CSA Responds to the Modernization Taskforce Final Report and Encourages Ontario to Adopt Passport Rule to Eliminate Unnecessary Burden The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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