Canadian Securities Regulation

Canadian securities regulation is managed through laws and agencies established by Canada's 13 provincial and territorial governments. Each province and territory has a securities commission or equivalent authority and its own piece of provincial or territorial legislation.

Unlike any other major federation, Canada does not have a securities regulatory authority at the federal government level. Provincial governments began to establish regulatory agencies in 1912 (in Manitoba), and the Privy Council decided in Lymburn and Mayland, A.C. 318 that such legislation is authorized under the provincial property and civil rights power.

Notwithstanding the lack of a federal regulator, the majority of provincial security commissions operate under a passport system, so that the approval of one commission essentially allows for registration in another province. However, concerns with the system remain. For example, Ontario, Canada’s largest capital market, does not participate in the Passport regime.

Concerns with the provincial system of securities regulation has led to repeated calls for a national securities system in Canada. Currently, the Government of Canada is working towards establishing a national securities regulatory system that it says will provide:

• better and more consistent protection for investors across Canada;
• improved regulatory and criminal enforcement to better fight securities-related crime;
• new tools to better support the stability of the Canadian financial system;
• faster policy responses to emerging market trends;
• simpler processes for businesses, resulting in lower costs for investors; and
• more effective international representation and influence for Canada.