In a unanimous judgment, the Supreme Court of Canada
has ruled that the proposed federal Securities Act is
unconstitutional. The federal government had referred the proposed
legislation to the Supreme Court for an advisory opinion before
proceeding with its plans to create a Canadian securities regulator
in conjunction with participating provinces.
The federal government argued that the
proposed Act falls under the general branch of Parliament's
power to regulate trade and commerce under s. 91(2) of the
Constitution Act, 1867. By contrast, several provincial
governments argued that the proposed Act falls under the provincial
power over property and civil rights under s. 92(13). In rejecting
the federal government's position, the Supreme Court concluded
that the main thrust of the proposed legislation does not address a
matter of genuine national importance and scope going to trade as a
whole in a way that is distinct and different from provincial
concerns.
