Winnipeg Free Press - PRINT EDITION

Interesting to watch as securities world evolves

  • Print

This week, we saw federal Finance Minister Joe Oliver announce he is resurrecting Jim Flaherty's initiative to develop a single securities regulator in Canada.

Currently, there are 13 securities commissions across the provinces and territories. Issuers of stocks and other investment vehicles needing to raise capital to make the economy grow must therefore have approval from up to 13 entities to legally market their wares everywhere in Canada.

This is the only such system in the developed world. All other countries have a national securities regulator. On the face of it, our system sounds ridiculous, but it's not as bad as it sounds.

The provincial securities commissions and the Canadian Securities Administrators (the CSA) have worked hard over the last 20 years or so to streamline this process as much as possible.

A system called NRD (the National Regulatory Database) allows a unified filing process for the registration of mutual-fund and securities salespeople, investment advisers and portfolio managers. In most cases, one commission takes responsibility for vetting and approving a registration request, and the other commissions accept their recommendation.

However, those of us who are registered in multiple provinces still know fees must be paid to each, and approvals are seldom simultaneous.

A similar co-ordinated system exists for new issues of securities, but there is still plenty of duplication and extra costs.

The single national regulator was a clear goal of the late Jim Flaherty, finance minister for the first eight years of the Harper government. The new minister has picked up the mantle, calling this initiative the Co-operative Capital Markets Regulatory System.

Joe Oliver and his officials have obviously spent time behind the scenes building consensus among the provinces. The big news in Wednesday's announcement was Saskatchewan and New Brunswick had joined Ontario and B.C. as supporters of the initiative.

The provinces not supporting the single regulator still include Manitoba, Alberta and Quebec.

This will be interesting to watch.

 

-- -- --

Here are some corrections to a previous article. Two weeks ago, we talked about CRM2, the Client Relationship Model of improved disclosure and communication between investors and their financial advisers.

I erroneously reported the CSA had developed these rules, but the Investment Industry Regulatory Organization of Canada (IIROC) was kind enough to point out they had developed their own new rules (as had the MFDA, the other self-regulatory body), and that these new rules were only approved by the CSA.

As well, they pointed out the future performance reporting required in 2016 will require all account statements to report performance for one, three, five and 10-year periods, and since inception. I had suggested the inception reports would only be required for accounts open less than 10 years.

Finally, according to IIROC, the compensation dealers receive from selling GICs will be exempt from the requirement to disclose all forms of compensation received from the sale of other investments.

I apologize for these imprecisions.

 

David Christianson is a financial planner and adviser with Christianson Wealth Advisors and a vice-president with National Bank Financial Wealth Management.

Republished from the Winnipeg Free Press print edition July 11, 2014 B9

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Winnipeg Cheapskate: Cheap summer weekends

View more like this

Photo Store Gallery

  • Marc Gallant/Winnipeg Free Press. Local- Peregrine Falcon Recovery Project. Baby peregrine falcons. 21 days old. Three baby falcons. Born on ledge on roof of Radisson hotel on Portage Avenue. Project Coordinator Tracy Maconachie said that these are third generation falcons to call the hotel home. Maconachie banded the legs of the birds for future identification as seen on this adult bird swooping just metres above. June 16, 2004.
  • Perfect Day- Paul Buteux walks  his dog Cassie Tuesday on the Sagimay Trail in Assiniboine Forest enjoying a almost perfect  fall day in Winnipeg- Standup photo – September 27, 2011   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

What should the city do with the 102-year-old Arlington Street bridge?

View Results

View Related Story

Ads by Google