Federal Government Proposes Draft National Securities Act

The Canadian federal government has now released a draft of its proposed national Securities Act (the "Draft Act"). It has also referred the Draft Act to the Supreme Court of Canada for its opinion as to whether the Act is within the legislative authority of the Parliament of Canada - in other words, whether it is "constitutional". If implemented, the Draft Act would, among other things, establish a national Canadian securities regulatory authority (the "CSRA"). The governments of Québec and Alberta have filed court challenges in their provinces against the plan for a national securities regulator, and Manitoba has so far declined to endorse such a plan. All of the other jurisdictions appear to support a national approach to securities regulation.