Briefly:

Quebec-based Industrial Alliance says is not backing the proposed national securities commission and wants better enforcement of prosecuting white collar crimes.

Canada’s fourth-largest life insurer says the federal government has an important role to play in strengthening criminal proceedings and becoming more involved in investigations. The insurer is a supporter of further harmonization of regulations.

Charest says the company supports dialogue and consensus-building to achieve an optimal, harmonized supervision of the financial system which will satisfy all economic players.

Business leaders in Quebec fear that a single national securities regulator will threaten thousands of jobs in the province and will weaken economic development.

Finance minister Jim Flaherty has said that studies have consistently shown that having 13 provincial or territorial regulators instead of one adds to costs.

Flaherty recently said Canada is the only country in the G20 without a national securities regulator. He said it is “an international embarrassment to Canada which otherwise has a very strong brand in financial institutions and regulation around the world.”

• • •

Canadian buyout industry recovering

Investment and fundraising levels are up as Canada’s buyout industry shows signs of recovering from the global economic slowdown, says Q1 2010 data released by Canada’s Venture Capital and Private Equity Association (CVCA).

The report said the Canadian buyout industry’s experience has been similar to those in the US and around the world.

“The data indicate that the Canadian buyout market stabilized in Q1, largely as a result of increased investments by Canadian funds both here and abroad,” says Gregory Smith, president, CVCA, and managing partner, Brookfield Financial. “The strong fund raising record of the last three years is now being deployed to take advantage of business opportunities at home and across the globe.”

Canadian funds invested US $415 million in Canada in Q1 while American and other foreign funds invested only US $40 million, down significantly from the US $381 million in Q4 2009 and the US $567 million in Q1 2009.

In addition to increased investment at home, Canadian funds invested substantially more abroad in Q1 (US $719 million) than in recent quarters.

Buyout fundraising remained modest in Q1 2010 with $260 million raised, barely 10% of the $2.8 billion in the year 2009.

Smith said fundraising from domestic and international sources will be key to maintaining robust investment volumes going forward.

(05/18/10)