Comment Letters On Proposed Federal Systemic Risk Legislation Raise Significant Concerns

The consultation draft of the federal Capital Markets Stability Act (CMSA) issued in September 2014 proposes a novel regulatory regime directed at protecting the stability and integrity of Canada's financial system through the management of systemic risk, which was discussed in a number of public comment letters.

The CMSA is companion legislation to the proposed Provincial Capital Markets Act (PCMA) that has been issued under the memorandum of agreement entered into by the Canadian government and the governments of British Columbia, Ontario, Saskatchewan, New Brunswick, Prince Edward Island and Yukon (collectively, the Participating Jurisdictions). The PCMA relates to a proposed cooperative capital markets regulatory system (Cooperative System) controlled by a single regulatory body, the Capital Markets Regulatory Authority (Authority).