OTTAWA — The B.C. government says it will not back Ottawa’s proposed legislation to create a national securities regulator, bolstering opposition to a plan that has been referred to the Supreme Court to see if it’s constitutionally allowed.
Several provinces say Ottawa is be overstepping its bounds in wanting to form a centralized watchdog to oversee all of Canada’s capital markets.
B.C. Finance Minister Colin Hansen said Tuesday the province still supports the concept of a national securities regulator, but through a co-operative model.
Ottawa has responsibility over trade and commerce, while provincial governments have responsibility over property and civil rights, Hansen said.
“British Columbia has consistently argued these types of business fields fall squarely within provincial jurisdiction,” Hansen said in a statement.
“There is still good support for a national securities regulator, but we must ensure the model is effective, stable and constitutionally sound.”
Alberta and Quebec are challenging the constitutionality of the plan in their respective appeal courts, and the issue is being dealt with in the Supreme Court of Canada.
Manitoba, New Brunswick and Saskatchewan have also expressed concerns, while Ontario, home to Canada’s largest stock market, has been a leading supporter of the creation of a national regulator.
Federal Finance Minister Jim Flaherty, who referred the matter to the Supreme Court for a ruling, said the provinces are concerned about the broader implications related to Ottawa’s powers.
“We’ll leave it to the Supreme Court,” Flaherty said Tuesday.
Canada is the only country in the G20 without a national securities regulator.
The securities industry in Canada is currently administered independently by the provinces and territories, although jurisdictions co-operate under what is called the “passport” arrangement.
Ottawa has argued the present approach is cumbersome, costly and not effective in detecting and enforcing fraud.
A national securities regulator has the support of many business groups, including the Canadian Bankers Association, and has been recommended by both the International Monetary Fund and the Organization for Economic Co-operation and Development.