Quebec Court of Appeal: The national securities regulator project is unconstitutional

By Yves Faguy Web Only

Quebec Court of Appeal: The national securities regulator project is unconstitutional

The Court of Appeal of Quebec has ruled that the plan for a new national securities regulator is unconstitutional.  The plan called for a new regulatory regime for capital markets, including a national regulator, a uniform act  that each participating province and territory would adopt, and a federal act aimed at ensuring the stability of capital markets.

The court ruled that the proposed mechanism for amending the Uniform Act violates the parliamentary sovereignty of the provinces. That's because the provinces' power to legislate in this area would require  the approval of an external body, the Council of Ministers, which is prohibited. Also problematic is the Council’s voting mechanisms for adopting regulations under the federal law, as they would essentially grant the an effective veto to the provinces over federal initiatives targeting systemic risks that could pose a serious risk to Canada's financial system.

Filed Under:
Comments
No comments


Leave message



 
 Security code