B.C. delays implementation of new Securities Act

British Columbia has decided to play ball with other provinces, putting off the introduction of a new Securities Act until at least the end of 2007, opting instead to support the passport system.

The British Columbia Securities Commission’s original changes to the act proposed a principles, rather than rules-based, regulatory regime, replacing existing regulations for advisors with codes of conduct, creating a new advisor registration category for independent owner operators and introducing firm-only registration.

The B.C. government appears to have changed its mind on the new regime, at least for now, according to Wally Oppal, the province’s attorney general, who released a statement on Friday following a meeting of the Council of Ministers of Securities Regulation.

Oppal said that, based on recommendations made by the commission, implementation of the B.C. Securities Act is not expected before December 31, 2007 to allow the province to fully participate in the passport system.

“This week’s meeting in Victoria of ministers responsible for securities affirmed the commitment of most provinces and territories to harmonize and streamline our legislation,” Oppal said in a statement. “It is now clear that the provincial-territorial agreement offers the best way for Canada to improve protection for investors and reduce regulatory burden on the securities markets.”

The passport system, implemented in September 2005, allows issuers and registrants to deal only with the regulator in their principal jurisdiction, providing a single window of access to capital markets in 12 Canadian provinces and territories.

BCSC chair Doug Hyndman says he’s pleased with his government’s decision. “This will allow us to focus our efforts on the passport system. We intend to work with the government and our colleagues in other provinces and territories to make Canadian regulation more efficient and effective, particularly by seeking national acceptance of an approach based on clear principles and on regulatory requirements and processes designed to achieve results.”

With B.C. now on board, that leaves Ontario as the lone holdout, preferring instead to push for a single national regulator.

Last December, the Crawford panel released “Blueprint for a New Model,” a discussion paper, commissioned by the Ontario government, on a common Canadian securities regulator.

“Ontario believes that a common securities regulator is key to making Canada’s capital markets more competitive and more efficient, and that’s good for every jurisdiction and Canada as a whole,” said Gerry Phillips, Ontario’s minister responsible for securities regulation.

Panel chair Purdy Crawford also made a presentation at last week’s Council of Ministers of Securities Regulation meeting in Victoria, with Alberta finance minister Shirley McLellan conceding that the renowned securities lawyer “certainly offered us some food for thought.”

Filed by Doug Watt, Advisor.ca, doug.watt@advisor.rogers.com