The momentum underlying the cooperative capital markets regulator has dissipated, at least for the time being, as the participating provinces await approval from the new federal government. The opposing provinces have stepped into this vacuum with several opinion pieces in the media, making argument against the cooperative regulator. The arguments are well-worn, but the hope is they could fall on sympathetic ears in Ottawa.

Some in the legal community have also renewed complaints about the new proposed provincial/territorial Capital Markets Act (CMA) legislation, notably the content of the BC legislation taken as the “platform” legislation—a model chosen because it leaves the details governing disclosure, etc. to regulation. The critics point to the extraterritorial reach of the BC legislation and sweeping powers given the Capital Markets Regulatory Authority (CMRA).

The comments may well be justified, particularly seen through the lens of the Ontario Securities Act, but, at this late stage, the best course of action is eventual amendment of the new proposed legislation where deemed necessary. The alternative of junking the Regulator because of concerns with the proposed CMA is a non-starter.