Sources Say: Federal and provincial governments shutting down Cooperative Capital Markets Regulatory project

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The Globe and Mail | Andrew Willis | Mar 31, 2021

national securities regulator initiative in Canada shutting down - Sources Say: Federal and provincial governments shutting down Cooperative Capital Markets Regulatory project

The federal government and seven provinces and one territory are shutting down the organization charged with creating a national securities regulator due to waning political support for the project in jurisdictions such as Ontario and British Columbia.

The federal Finance Department will announce as soon as Thursday it is closing the five-year-old Capital Markets Authority Implementation Organization and laying off its staff, according to two sources working on the project. The Globe and Mail is not identifying the sources because they are not authorized to speak for the government or CMAIO.

See: NCFA: Canada Needs a Harmonized Securities Environment as Current Provincial Approach is a Fintech Innovation Killer

Canada is the only G20 country without a national securities regulator. Each province and territory is responsible for overseeing its own capital markets. Former federal finance minister Jim Flaherty championed the concept of a single regulator when the Conservatives were in power. The federal Liberals picked up the baton after the 2015 election, committing $30-million to the CMAIO in 2016, along with tens of millions of dollars for programs meant to win support for the project from the provinces.

The CMAIO was created to design and build a new co-operative capital markets regulatory system that provinces and territories could voluntarily join. The goal was to streamline regulations to better protect investors, foster efficient capital markets and manage systemic risk while preserving the strengths of the current system. Since it was launched in 2016, B.C., New Brunswick, Nova Scotia, Ontario, Prince Edward Island, Saskatchewan, Newfoundland and Labrador and Yukon signed on. Quebec and Alberta oppose the concept and never joined. Nunavut and Northwest Territories did not join either.

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