On November 9, 2018, the Supreme Court of Canada (SCC), in a unanimous ruling, held that the Constitution
of Canada does not restrict the federal government from
establishing a national securities regulator.
The SCC noted that the federal draft legislation concerning
Canada-wide oversight of activities associated with securities
falls within the scope of the federal government’s powers
regarding trade and commerce, and that establishing a national
securities regulator would not “improperly fetter the
legislatures’ sovereignty.”
Currently, Canada is an anomaly in that the division of
constitutional powers between the federal government and the
provinces and territories has led to inconsistencies amongst the
provincial securities regulators. Supporters of a national
securities regulator believe that the presence of a national
regulator will eliminate duplication, reduce “red
tape”, promote consistent enforcement practices, and improve
investor protection.
