No need for single securities regulator in Canada: AMF

The Autorit des marches financiers (AMF) does not support the proposal by the federal minister of finance for a single securities regulator in Canada, citing the sheer size and diversity of Canada as a major hurdle in such an undertaking.
In its position paper, ‘Single regulator: A needless proposal,’ the AMF concludes that current securities regulation in Canada is adequate.
“On an international scale, Canada operates a small securities market made up of firms located across a vast territory with needs that vary significantly from region to region and which, for the most part, are financed locally,” an AMF release says.
“Against this backdrop, a system of provincial and territorial regulators serves as the most appropriate framework model, as regulators are able to identify and respond more effectively to the specific needs of firms in their jurisdictions, while striving to harmonize securities regulations and processes.”
It points to the development of the passport system, designed to serve as a single window for firms and their representatives to do business on a Canada-wide basis, as an example of the ability and willingness for provincial and territorial regulators to harmonize regulations and processes.
The presence of local authorities also enhances consumer protection, as proximity of regulators to local markets facilitates the detection of fraudulent practices, it adds.
Instead of promoting centralization, the AMF says, federal, provincial and territorial authorities should work closely together to:
raise awareness about the importance of white-collar crime;
enhance the effectiveness of investigation teams, in particular integrated market enforcement teams; and
improve the tools available to investigation teams.