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(June 24, 2003) A single national securities regulator with regional offices across the country would result in reduced operating costs of more than $40 million a year, says a new study commissioned by the IDA. The study, conducted by Charles River Associates, was released Monday at the IDA’s annual conference in New Brunswick.
Last year, the combined budgets of Canada’s 13 provincial and territorial securities regulators topped $128 million. The study estimates that a single regulator administering one set of rules and regulations, with a head office in Ontario and regional offices in B.C., Alberta, Quebec and Nova Scotia, would cost about $88 million.
There may also be additional savings to financial intermediaries, issuers and investors, the study adds, if fees were reduced to coincide with lower operating costs.
“If the fees collected under a single regulator were limited to the operating costs, the estimated savings could rise to well over $73 million annually,” the study says.
IDA member firms could save $3.7 million annually in internal resources dedicated to tracking regulatory changes and a further $1.9 million a year in reduced registration costs.
The study does not take a position on whether a national regulator is feasible, or if such a regulator should be run by Ottawa or the provinces. “We are not asking whether a single national regulator would make better rules, but instead we are measuring the cost savings that would likely accrue if there was only one regulator,” the study says.
IDA president Joe Oliver calls the difference in costs between a national regulator and the current system “significant.” But he adds those differences can be greatly reduced through comprehensive harmonization.
Harmonization may be the most realistic route for reform, considering Quebec’s continued opposition to a centralized system. “I don’t think Quebec will accept a federally driven securities commission,” says Pierre Godin, chair of the Commission des valeurs mobilières du Qu&ecute;bec. “The position of Quebec has not changed and I don’t expect the new government to change one iota its position on this,” Godin told reporters today at the IDA conference.
Instead, Godin says regulators should focus on harmonizing rules and regulations through the Canadian Securities Administrators (CSA). “If we make the CSA more efficient, we’ll have done what the proponents of a centralized commission have asked for, but without all the constitutional hassles that would inevitably come with it.”
In an entertaining presentation today at the conference, Godin stacked the various rules and regulations affecting Quebec’s market participants on the table in front of him. The pile was 13 inches high when he was finished. “We may be reaching a limit in terms of sheer volume and systemic complexity,” he said. “There has to a better way.”
• • •
Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca
(06/24/03)
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(June 24, 2003) A single national securities regulator with regional offices across the country would result in reduced operating costs of more than $40 million a year, says a new study commissioned by the IDA. The study, conducted by Charles River Associates, was released Monday at the IDA’s annual conference in New Brunswick.
Last year, the combined budgets of Canada’s 13 provincial and territorial securities regulators topped $128 million. The study estimates that a single regulator administering one set of rules and regulations, with a head office in Ontario and regional offices in B.C., Alberta, Quebec and Nova Scotia, would cost about $88 million.
There may also be additional savings to financial intermediaries, issuers and investors, the study adds, if fees were reduced to coincide with lower operating costs.
“If the fees collected under a single regulator were limited to the operating costs, the estimated savings could rise to well over $73 million annually,” the study says.
IDA member firms could save $3.7 million annually in internal resources dedicated to tracking regulatory changes and a further $1.9 million a year in reduced registration costs.
The study does not take a position on whether a national regulator is feasible, or if such a regulator should be run by Ottawa or the provinces. “We are not asking whether a single national regulator would make better rules, but instead we are measuring the cost savings that would likely accrue if there was only one regulator,” the study says.
IDA president Joe Oliver calls the difference in costs between a national regulator and the current system “significant.” But he adds those differences can be greatly reduced through comprehensive harmonization.
Harmonization may be the most realistic route for reform, considering Quebec’s continued opposition to a centralized system. “I don’t think Quebec will accept a federally driven securities commission,” says Pierre Godin, chair of the Commission des valeurs mobilières du Qu&ecute;bec. “The position of Quebec has not changed and I don’t expect the new government to change one iota its position on this,” Godin told reporters today at the IDA conference.
Instead, Godin says regulators should focus on harmonizing rules and regulations through the Canadian Securities Administrators (CSA). “If we make the CSA more efficient, we’ll have done what the proponents of a centralized commission have asked for, but without all the constitutional hassles that would inevitably come with it.”
In an entertaining presentation today at the conference, Godin stacked the various rules and regulations affecting Quebec’s market participants on the table in front of him. The pile was 13 inches high when he was finished. “We may be reaching a limit in terms of sheer volume and systemic complexity,” he said. “There has to a better way.”
• • •
Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca
(06/24/03)
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