FAIR Canada and CARP
that they believe the proposed cooperative capital markets regulator (CCMR) is not in the interests of ordinary Canadians.
FAIR Canada and CARP are of the view that such a major change to the current system of securities regulation must represent an improvement for Canadians. The CCMR does not accomplish this due to its governance structure and substantive law.
Ermanno Pascutto, Chair of FAIR Canada states that "the onus is on those proposing to repeal the existing regulatory system to demonstrate the benefits of the proposed CCMR to Canadians. To date, we remain unconvinced that the change will benefit Canadians."
According to Wanda Morris of CARP: "
For capital markets to function effectively, investors need complete transparency, competitive fees and confidence that their interests will be protected. These elements are not in place now and the proposals put forward for the new regulator do not address these concerns
CARP urges provincial regulators to go back to the table.
OSC Leading Investor Protection
The Ontario Securities Commission (OSC) is the leading securities regulator on investor protection issues in Canada and under the CCMR, it would be eliminated and replaced by a new regulatory authority. This is set to occur on June 30, 2018.
Most recently, the OSC and New Brunswick's Financial and Consumer Services Commission have been alone in their public support to adopt a regulatory best interest standard to protect ordinary Canadians while the British Columbia Securities Commission (amongst others) have announced they do not support that financial services firms and their representatives should be required to act in the best interest of their clients.
FAIR Canada and CARP believe the reforms led by the CSA and OSC (and supported by the Ontario government) are critical to Canadians being able to adequately accumulate savings and critical to their being able to receive professional, objective advice that is consistent with safeguarding and advancing their interests.