The Regulation of Canadian Securities

Paper Summary:

This paper looks at the regulation of the securities industry in Canada. It briefly reviews the Canadian capital market and looks at the various self-regulating organizations (SROs) in place and their key features. From there, the paper discusses the nature of the Constitution Act, 1867, and how it can be construed as supporting local or provincial control of the securities sector.

From the Paper:

"As a last point before bringing this paper to a close, it should be added that self-regulation by the SROs discussed above (and at the provincial level in the form of securities commissions) are better simply because it allows supervisory bodies to concentrate their efforts upon a smaller group of individuals. To put the matter simply, individuals looking to break the law - or at least to engage in questionable practices - may feel that they can "slip through the cracks" of a national regulatory regime. However, by having provincial commissions in place (acting in conjunction with broad organizations like the MFDA and IDA, of course) the likelihood of evading detection becomes increasingly remote. Effective plans or programs that heighten the effectiveness of provincial self-regulation would surely seem to be ones that call for close cooperation between SROs and provincial commissions - with joint offices set up that pool resources and allow for immediate investigation of complaints or concerns."

Sample of Sources Used:

• Canadian Securities Institute. "Regulation of the Securities Industry." Conduct & Practices Handbook Course. Pp.29-58. (Additional information not provided).
• Department of Justice, Canada. "Constitutional Act, 1867." Constitution Acts: 1867 to 1982. n.d. Government of Canada. 29 Mar. 2007 <http://laws.justice.gc.ca/en/Const/c1867_e.html#distribution>
• Investment Dealers Association of Canada. "Registration - Frequently Asked Questions." IDA: Regulatory Resources. 19 Mar. 2007. IDA. 29 Mar. 2007 <http://ida.knotia.ca/Knowledge/View/Document.cfm?Ktype=445&linkType=toc&dbID=200704357&tocID=7>
• Investment Dealers Association of Canada."Roles and Responsibilities." About the IDA. 4 Dec. 2006. IDA: Investment Dealers Association of Canada. 29 Mar. 2007 <http://www.ida.ca/About/Roles_en.asp>
• Manitoba Securities Commission. "Registration Requirements." Mutual Fund Dealer. Aug. 2004. MSC: Manitoba Securities Commission. 29 Mar. 2007 <http://www.msc.gov.mb.ca/securities/registration/requirements/mutualfund.html>

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