IDA chair welcomes regulatory reform initiatives

(February 28, 2003) Recent efforts to update Canada’s system of securities regulation at both the federal and provincial levels “promise success,” says the chair of the Investment Dealers Association. But Terry Salman says the reform process must be collaborative and driven by political will or risk being derailed by inertia and vested interests.

“The federal initiative to establish a wise persons committee and the most recent announcement by B.C., Alberta, Ontario and Quebec of the establishment of a ministerial group to negotiate regulatory reform are positive developments,” Salman said in a speech yesterday to the Vancouver Board of Trade. “The federal initiative has been a catalyst for provincial action.”

Salman also praised the British Columbia Securities Commission and the Canadian Securities Administrators for their efforts to harmonize securities rules across the country.

“The IDA is supportive of BCSC proposals such as the continuous market access system and the passport system, which will significantly lower costs from market participants,” he said. “In addition, the Uniform Securities Legislation project offers a timely opportunity to introduce these concepts into securities regulation in Canada.”

On more local topics, Salman urged the B.C. government to “move aggressively” to develop oil and gas reserves and to immediately remove the current moratorium on offshore oil and gas production.

Salman also called on B.C. to phase out the provincial capital tax on financial institutions, which he said was a disincentive to companies interested in setting up shop in the province.

“The province cannot achieve tax competitiveness on its own,” he added. “We must continue to press the federal government for further personal and corporate income tax reductions.”

Salman said although he was pleased Ottawa had taken steps to lower taxes through the phased elimination of capital taxes, he was “personally disappointed” that last week’s federal budget did not place more emphasis on tax reduction “rather than on the heavy spending agenda that the government appears to have begun.”

Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca