Canadian Security Traders Association 23 rd Annual Conference Whistler British Columbia August 19 2016 Doug Hyndman Canadian Securities Transition Office Path to a Cooperative System 2 Comprehensive securities act is beyond federal jurisdiction ID: 780824
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Slide1
The Cooperative Capital Markets Regulatory System
Canadian Security Traders Association
23
rd
Annual Conference
Whistler, British Columbia
August 19, 2016
Doug Hyndman
Canadian Securities Transition Office
Slide2Path to a Cooperative System2
Slide3Comprehensive securities act is beyond federal jurisdiction
Each level of government has jurisdiction over some aspects of the regulation of capital markets
Provinces — “day-to-day” securities regulation
Federal — data collection, systemic risk, criminal
Each can work in collaboration with the other to carry out its responsibilities.
Supreme Court of Canada (Dec 2011)
3
Slide4Cooperative System Elements4
Head Office — Toronto
Office in Each Participating Province and Territory
Regulations
Regulations
Slide5The
Authority (CMRA)
5
Jointly established by participating governments
Single, operationally independent entity
Governed by expert board of independent directorsTribunal separate from board and independent of regulatory functionsSelf funded through a single set of fees
Slide6CMRA: Structure6
Council of Ministers
Appointment of Board and Tribunal members
Policy oversight, including power to reject or require consideration of a proposed CMA or CMSA regulation
Accountability oversight
Board of DirectorsGovernance of the CMRA, other than matters related to the Tribunal’s adjudicative functionsPower to make regulations and decisions under the CMA and CMSARegulatory DivisionLed by the Chief RegulatorAdministers and enforces the legislationProvides policy advice to BoardTribunalLed by the Chief Adjudicator
Hears and decides on enforcement actions and appeals of regulatory division decisions
Slide7Cooperative Legislative Framework
Federal
Capital Markets Stability Act
(CMSA)
Capital Markets Regulatory Authority
(CMRA or Authority)Established under CMRA Act7
Slide8Capital Markets Act8
Harmonized version of current provincial securities acts
Some new or modernized provisions, including new framework for derivatives
Published for comment Sept 2014; republished Aug 2015
Slide9Capital Markets Stability Act9
Federal legislation to apply throughout Canada
National data collection
Systemic risk in national capital markets
Criminal offences related to capital markets
Published for comment Sept 2014; republished in May 2016Revised version narrows scope somewhat
Slide10CMRA Act10
To establish the Capital Markets Regulatory Authority as a joint federal-provincial entity
Will provide for:
structure, governance and oversight
appointment of board, chief regulator and adjudicative tribunal
legal capacities and immunities
Slide11Regulations11
Draft initial regulations under CMA
Based on existing provincial rules/national instruments
Eliminate differences in requirements among participating jurisdictions
Make other changes only as necessary to fit existing rules with CMA
Minimize disruption for market participantsPublished for comment August 2015No regulations proposed under CMSA before launch
Slide12Regulations yet-to-come12
Capital-raising exemption regulations
to be published later as a separate consultation package
CCMR fee regulation
considerable work done but regulation awaits firmer budget forecasts
Interface with non-participating jurisdictionsstill to be negotiatedTransition provisions to address legal continuity issues
detailed table published last December
Slide13Board of Directors13
CMRA will be created in 2018
Meanwhile, governments have created an interim entity, Capital Markets Authority Implementation Organization (CMAIO), to
permit appointment of the initial Board
provide a vehicle to advance work on integrating the existing securities regulators into the CMRA
Initial Board of 15 directors appointed July 2016 to assist in transition and implementation
Slide14Board Members14
William Black, chair
Andrea Bolger
Joan Dunne
Garth Girvan
Rory GodinhoNancy HopkinsPeter KlohnDouglas KnightJill LeversageHarold MacKayJohn McCoachJean-Pierre OuelletVicky SharpeEric TrippHoward Wetston
Slide15Timelines for 2018 Launch15
Slide16More Information16
www.ccmr-ocrmc.ca
www.cmaio.ca