that a dynamic and
efficient capital market in Canada contributes to economic growth
through the effective mobilization of savings and cost-effective
access to capital for new
and existing businesses and for governments;
that high standards
of investor protection and market integrity are critical to preserving
investor confidence; and
that modern, balanced
and responsive securities regulation is essential to ensuring a
dynamic, fair, efficient and competitive capital market.
Consistent with and focusing on the Task Force Mandate: recommend
Canadian securities legislation and regulation to achieve a dynamic,
fair, efficient and
competitive capital market.
1. Address central principles
relating to key areas of securities legislation and regulation.
2. Define principles and outline
rules clearly to provide direction to policy makers, but do
not draft legislation or regulations.
3. Achieve an appropriate balance
between investor protection and economic growth and
between principles and rules.
4. Consider how to provide direction
to interpretation, implementation and administration
of regulations by regulatory staff to ensure continuity of policy
1. Accept the securities commissions’
mandate as to “protect investors, preserve market
integrity and enhance efficiency and competitiveness.”
2. Draw on but do not be confined
by existing legislation in Canada, US and Europe, as well
as USL project.
3. Draw on latest regulatory thinking
in Canada and abroad.
4. Consider domestic and global
capital markets’ developments and trends, new financial
instruments and techniques and investors’ needs and expectations.
5. Balance benefits of international
harmonization with sensitivity to market access, especially
for small- and medium-size enterprises.
6. Maintain neutrality as between
provincial and federal jurisdiction.
7. Challenge established assumptions,
e.g., regarding effectiveness of disclosure, need for
identical or similar requirements for all issuers, what constitutes
conflicts of interest and
what does not.
8. Move from focus on theoretical
to effective disclosure, especially in relation to retail
9. Exploit IT potential to eliminate
excessive paper load, increase reliability and speed and
10. Consider importance of plain
language in investor disclosure.
11. Consider entrenching a cost/benefit
obligation as in the UK for the FSA.
1. Conduct a broad consultation
across the country with a wide variety of constituencies.
2. Develop and follow a communications
plan to explain objectives, encourage consultation,
3. Develop and follow a detailed
budget, not to exceed $7 million, including fees, travel,
consultants, professional staff, and externally generated studies,
4. Adhere to one-year timeframe
5. Post-publication, follow up
on communication, consultation and advocacy.