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ARTICLE · 19 JANUARY 2012

Implications Of The Supreme Court Decision In The Securities Act Reference

Borden Ladner Gervais LLP
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Following the release of the Supreme Court of Canada’s decision on December 22, 2011 in the Reference Re Securities Act, 2011 SCC 66, the Government of Canada will be forced to rethink its efforts to implement a national regime for securities regulation.

CanadaCorporate/Commercial Law

Following the release of the Supreme Court of Canada's decision on December 22, 2011 in the Reference Re Securities Act, 2011 SCC 66, the Government of Canada will be forced to rethink its efforts to implement a national regime for securities regulation.

Although the Supreme Court acknowledged that aspects of securities regulation raise valid national concerns, it clearly rejected the federal government's claim to constitutional authority to displace day-to-day provincial regulation of the securities industry:

[W]e accept that the economic importance and pervasive character of the securities market may, in principle, support federal intervention that is qualitatively different from what the provinces can do. However, as important as the preservation of capital markets and the maintenance of Canada's financial stability are, they do not justify a wholesale takeover of the regulation of the securities industry which is the ultimate consequence of the proposed

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