Fair Canada and CARP say the proposed cooperative capital markets regulator (CCMR) is not in the interests of average Canadians. In a release, both organizations argue such a major change to financial industry regulation must be done for that reason, and the CCMR falls short.
Why?
One barrier, they say, is its proposed governance structure and substantive law. Ermanno Pascutto, chair of FAIR Canada says, “To date, we remain unconvinced that the change will benefit Canadians.”
“For capital markets to function effectively, investors need complete transparency, competitive fees and confidence that their interests will be protected,” says Wanda Morris, vice-president of advocacy and COO at CARP. “These elements aren’t in place now, and the proposals put forward for the new regulator don’t address these concerns. CARP urges provincial regulators to go back to the table.”
The latest news about the CCMR is, in November 2016, Kevan Cowan was selected to be the initial Chief Regulator of the future Capital Markets Regulatory Authority, or CMRA. Then, in January 2017, Cowan announced that members of the CCMR’s initial management team had been chosen; this team “will lead the work to operationalize a cooperative regulator,” according to a release.
The Capital Markets Regulatory Authority Implementation Organization also recruited two specialists from the BCSC and OSC to help with that process.
Read: How powerful should the Capital Markets Stability Act be?
Still, CARP and Fair Canada are worried about losing OSC, which they say is “the leading securities regulator on investor protection issues.” Under the CCMR, the OSC would be eliminated and replaced by a new regulatory authority, as of June 2018. Most recently, they argue, the OSC was one of only two provinces that committed to work on CSA’s regulatory best interest standard.
Read: Battle over CSA reforms reveals industry cracks
Both Fair Canada and CARP argue that the CSA’s reforms “are critical to Canadians being able to adequately accumulate savings and critical to their being able to receive professional, objective advice,” in their release. (In a December 2015 letter, FAIR Canada recommended reform of the CCMR to the federal and provincial governments, and it now points to a May 2017 white paper that it commissioned that compares OSC and the CCMR.)
Also read: Ontario wants to close advisor proficiency gaps in ‘coming year’
Do you agree or disagree with FAIR Canada and CARP’s position? Email us.