Flaherty calls for Canadian securities watchdog

Federal Finance Minister Jim Flaherty called Monday for the creation of a national securities watchdog, saying the current patchwork ofregulatory systemscreatesunnecessary hurdlesfor Canadian companies.

Ina speech to the Halifax Chamber of Commerce, Flaherty said reducing 13 provincial and territorial securities organizations down to onewould help fosterbusinessin Canada.

"Regulations in multiple jurisdictions can needlessly delay financing and slow down businesses that are trying to grow," Flaherty said.

"Companies faced with these obstacles may simply throw up their hands and find private financing or choose markets outside Canada," he warned.

While the concept of a national securities regulator has support among somegovernments, including Ontario's,provinces including Quebec and British Columbia are against the idea.

Flaherty said he will bring up the issue when he meets next week with provincial finance ministers in Niagara-on-the-Lake, Ont.

Earlier this month, a government-appointed panel laid out a framework for a single, national securities regulator.

The proposed Canadian Securities Commission would offer a single unified voice that would oversee stock markets across the country, without being dominated by any one jurisdiction, said the Crawford Panel. It was headed by prominent Toronto business lawyer Purdy Crawford.

In May's federalbudget, the Conservative government said it wanted to appoint a national stock market regulator "on a priority basis."