Quebec’s Court of Appeal turns down proposal for pan-Canadian securities regulation

Maria Nikolova

The proposed regime “fetters the parliamentary sovereignty of the participating provinces and is consequently unconstitutional”, according to the Quebec Court of Appeal.

While Canada’s provincial authorities struggle to implement a binary options ban, a wider push for a pan-Canadian securities regulation has seen dynamic development over the past several months. The push to establish a Cooperative Capital Markets Regulatory System, a securities regulation at a national level in Canada, hit the curb on May 10, 2017. In a ruling, handed down yesterday, the Quebec Court of Appeal said the proposed pan-Canadian securities regulator is unconstitutional given that the system for amending securities laws would result in jurisdictional issues between the federal government and Canada’s provinces.

The efforts to form some sort of securities regulation at the national level for Canada were revived in the fall of 2016. This happened five years after the Supreme Court of Canada (SCC) ruled against plans for a pan-Canadian securities regulator in late 2011. Opponents of the move say the planned legislation is indeed a covert amendment to the constitution, which would undermine the accountability of the regulators to their legislatures. Those in favour of the proposal insist that it is necessary to protect Canada’s financial system, and that this cannot be achieved with a regulatory framework that is solely a provincial responsibility.

Let’s note for that matter that under the proposals, at the head of the Regime sits a Council of Ministers, composed of the ministers charged with regulating capital markets in the participating provinces and territory as well as the Minister of Finance of Canada.

The first question the Court considered was whether the Constitution of Canada authorize the implementation of pan-Canadian securities regulation under the authority of a single regulator. The majority of judges answered “No”. In their view, the mechanism proposed “fetters the parliamentary sovereignty of the participating provinces and is consequently unconstitutional”.

On the second question, the judges answered that the powers of the planned Council of Ministers would “undermine the constitutional foundation of the federal act and to be irreconcilable with the purposes of the proposed federal legislation.”

Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”