Tag Archives: Securities regulation

The Cost-Benefit Thinking of Securities Regulators Needs to be More Transparent (IIAC Blog)

The Cost-Benefit Thinking of Securities Regulators Needs to be More Transparent (IIAC Blog)

Cost–benefit analysis is a valuable tool for assessing major public policy decisions, projects and regulations—for example, evaluating prospective regulations in a number of fields, including health, safety and the environment. The nature of securities regulation, however, makes costs-benefit analysis more difficult. Rather than focusing on a particular action, like releasing a pollutant, financial regulation cost-benefit analysis focuses on behavioural and market reactions.

Canadian securities regulators have refrained from conducting formal (quantitative) cost-benefit analysis because it is so complex. However, this not an excuse to avoid it. A more disciplined and rigorous approach to the rule-making process—one … Continue reading

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Special to Financial Post: Believe in the securities regulator’s board, the glass is still half full (IIAC Blog)

Special to Financial Post: Believe in the securities regulator’s board, the glass is still half full (IIAC Blog)

Extended delay in implementing the cooperative regulator, announced with the recent appointment of the Board of Directors, coupled with the reality of large provinces likely not participating in the new regulatory structure, have sparked media commentary that the cooperative effort may be doomed to eventual failure.

Skepticism is understandable, but one could take the opposite point of view. In my FP Comment I look at the part of the glass is half full.

Click here to read my Op-Ed, special to Financial Post.

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Capital Markets Regulatory Authority Initial Board of Directors Announced (IIAC Blog)

Capital Markets Regulatory Authority Initial Board of Directors Announced (IIAC Blog)

The Investment Industry Association of Canada (IIAC) welcomes today’s announcement of the initial slate of Board of Directors for the Capital Markets Regulatory Authority (CMRA). The appointment of the 15 new Board members is an essential step in moving forward with the build-out and expected launch of the new cooperative regulator in 2018.

The IIAC commits the full support of its constituent member firms and professionals to assist the newly appointed Board of Directors in carrying out its mandate. We are convinced that, under the effective leadership of Chair William A. Black, the new Board of the … Continue reading

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Smooth Sailing Likely for National Securities Regulator (IIAC Blog)

Smooth Sailing Likely for National Securities Regulator (IIAC Blog)

Today, the Financial Post, in its FP Comment page, is running a piece I wrote on how the recent FSB/IOSCO decisions will galvanize broader support for the new cooperative securities regulator.

In recent months, the multinational regulators—the FSB and the IOSCO—have concluded that systemic risks related to large asset managers flow from their potential system-wide impact on capital markets, not from the particular institution per se. It is likely that Canadian authorities will reach a similar conclusion. This would likely mean removal of large Canadian non-bank non-insurer financial institutions from inclusion in the Capital Market Stability Act (CMSA)—i.e. the … Continue reading

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Bill Black Appointed Chair of the Capital Markets Regulatory Authority (IIAC Blog)

Bill Black Appointed Chair of the Capital Markets Regulatory Authority (IIAC Blog)

Today, the Ministers responsible for capital markets regulation in British Columbia, Ontario, Saskatchewan, New Brunswick, Prince Edward Island, Yukon and the federal Minister of Finance – together representing the Council of Ministers – announced  that William “Bill” A. Black has been appointed Chair of the Board of Directors of the Capital Markets Regulatory Authority.

Bill Black is an excellent choice. He is recognized as a proven leader in the business community with a career that spanned 34 years at Maritime Life, including nine years as President and Chief Executive Officer. He has the requisite knowledge and experience in financial markets, has worked … Continue reading

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IIAC’s Response to Proposed Guidance on Marketplace Thresholds (IIAC Blog)

IIAC’s Response to Proposed Guidance on Marketplace Thresholds (IIAC Blog)

The IIAC has submitted comments to the Investment Industry Regulatory Organization of Canada (IIROC) on the proposed guidance requiring Canadian exchanges and alternative trading systems to establish specific price thresholds that, when breached, would trigger a halt in trading in the event a particular stock experiences rapid and unexplained price movement over a short period of time.

The IIAC generally supports the principles of the guidance, but voiced significant concern with the requirement that dealers tailor their individual order flow so as to avoid exceeding the marketplace threshold for a particular security.

In our view, … Continue reading

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Regulatory Map of Canada

Regulatory Map of Canada

Regulation of Canada’s investment industry is, well, confusing – to put it mildly.  CIFP has created an easy-to-use, interactive map aimed at simplifying the layers (and layers) of regulatory oversight in this country.  All users have to do is click on a province or territory, and a drop-down menu appears with a hyperlinked list of regulators in each region.  There’s also an option to click on the Canadian flag for a list of the oversight bodies at the national level.

Although this is straightforward, navigating the map is yet another reminder of why Canada needs a cooperative … Continue reading

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