Where the parties stand on cross-pillar mergers

Removing a de facto ban on allowing cross-pillar mergers between banks and insurance companies is “not a priority” for the Conservative Party of Canada.
The Liberal Party of Canada says it would analyze the possibility of such mergers on an individual basis, keeping in mind the principles of international competition and marketplace competition.
The New Democratic Party could not be reached for comment on its policy towards cross-pillar mergers.
The issue came up just a few months before the election call in Canada, when the Competition Policy Review Panel issued its final report in June 2008, entitled “Compete to Win.”
The panel’s mandate was to recommend to the federal government ways to increase Canada’s overall economic performance through greater competition.
The panel’s many recommendations included removal of “the de facto prohibition on bank, insurance and cross-pillar mergers of large financial institutions subject to regulatory safeguards, enforced and administered by the Office of the Superintendent of Financial Institutions and the Competition Bureau.”
A Conservative Party spokesperson said the specific recommendation about cross-pillar mergers was “not a priority for our party.”
In a Sept. 12 speech, Prime Minister Stephen Harper said he would be focusing on other panel recommendations, including increasing the threshold for foreign investment reviews, as well as opening up regulated airline and uranium mining sectors to allow increased foreign investment.
When asked about the Liberal Party’s policy regarding the prospect of cross-pillar mergers between banks and insurance companies, the party issued a statement that said: “Cross-pillar mergers will be analyzed by a Liberal government on a case-by-case basis. The principles of review to be applied are international competitiveness and also maintaining competition in the marketplace.”