Wise Persons’ Committee on Securities Regulation
- that a dynamic and efficient capital market in Canada will contribute
to economic growth through the effective mobilization of savings and the
provision of low-cost financing for new and existing businesses;
- that efficient, effective and responsive securities regulation is an
important factor in ensuring a dynamic and efficient capital market;
- that securities regulation needs to provide high standards of investor
protection—particularly in light of the Sarbanes-Oxley Act in response
to Enron and other U.S. corporate scandals; and
- that a large number of Canadians believe that the present system of
securities regulation in Canada can and should be improved; a Wise Persons’ Committee is established. The Committee
The objectives of the regulatory structure proposed by the
Committee should be to:
- review and assess the strengths and weaknesses of the existing system
of securities regulation in Canada;
- recommend the appropriate regulatory structure that will best meet
Canada’s needs; and
- recommend a governance model and describe an accountability framework.
- provide sound protection for investors and confidence that Canada’s
capital markets are regulated with the highest standards and that those
standards are rigorously and equally enforced throughout the country;
- provide efficient capital markets for Canadian businesses of all
sizes, and not place an undue burden on firms seeking to raise capital
or on firms seeking to offer capital market services;
- encourage dynamic and innovative capital markets throughout Canada;
In carrying out this mandate, the Committee will solicit the
views of governments, regulators, market participants and the Canadian
public on these issues and consider any other relevant issues raised in
these discussions. The Committee should, where possible, work with
provincial governments and regulators and take into account the work of
complementary processes aimed at improving securities regulation in Canada.
- present foreign investors, governments and regulators with a positive
image of securities regulation in Canada.
The Committee will also give particular consideration to the
respective merits of two specific models against the objectives described
(a) an enhanced version of the present system, with such
practical and achievable improvements as the Committee might propose so
that there is a greater sense of common purpose and more efficiency; and
The Committee may also consider other models, including
combinations of the above.
(b) a single commission model in which governments
electing to participate would pool some or all of their authority in a
single regulator administering one set of rules.
In elaborating its recommendations, the Committee will also:
- identify any difficult or challenging issues to be encountered in
achieving the model it recommends and propose ways to resolve these
The Committee will supervise a dedicated staff to assist in
its consultations and to undertake or organize research studies or prepare
papers or discussion documents it considers necessary to complete its work,
subject to budgetary limits.
- address any significant implementation issues, including transition
costs, should major institutional changes be proposed.
The Wise Persons’ Committee will report by November 30, 2003.