Canada’s Finance minister is calling for tougher regulations, perhaps in wake of the Conrad Black trial, but Finance Minister Jim Flaherty is calling for action.  Currently Canada is comprised of 13 different security commissions, each managed at the provincial level providing for 13 different sets of laws and 13 sets of fees.

He made note that the current situation of provincial regulators is holding the country back and will continue to lose ground to more dynamic capital markets like Hong Kong if action is not taken soon.

The first step towards implementing a unified system would be to assemble a panel of experts to report recommendations to form a consensus.  This proposal by Flaherty was turned down by most of the provincial finance ministers, who instead opted for a passport system which would attempt to harmonize securities laws across the country.  Only Ontario, the home to the TSX, Canada’s largest stock market and largest provincial securities commission supported the federal minister.

The proposed system would better protect investors and open the doors towards a growing movement in free trade in securities.

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