Panel lays out blueprint for national securities regulator

A government-appointed panel has laid out a framework for a national securities regulator that would replace the 13 provincial and territorial securities commissions.

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

Over the years, there have been many calls for a national regulatory commission. But all attempts to set up such a system have been bogged down in jurisdictional disputes. Smaller provinces have been worried that a national regulator might be little more than a warmed-over Ontario Securities Commission by far the most powerful securities regulator in the country.

"Canada is the only major country in the world without a single securities regulator," the Crawford Panel said in its report. "As well, there is profound concern about ineffective enforcement of securities regulation a domestic and international embarrassment for Canada."

The panel proposes a five-part model for the new national regulator. It would include:

1. A council of ministers, whose memberswould come from each participating jurisdiction and would beaccountable to the public. Each minister would have one vote when selecting members of an independent board of directors and adopting commission rules.
2. An arm's length nomination committee whose memberswould be appointed byparticipating jurisdictions. The committee memberswould recommendcandidates for the board of directors and the Canadian Securities Tribunal.
3. A board of directors, which would be made up of people with investment and regulatory expertise.
4. An executive management team, which would include a chief commissioner appointed by the board.
5. A Canadian Securities Tribunal, which would feature panels of adjudicators appointed by the council of ministers and operate separately from the Canadian Securities Commission.

The Crawford panel also recommended the development of one simplified Canadian Securities Act and a single fee structure. The new regulator would use these fees to finance its operations.

The panel made no recommendation about the location for the new regulatory body. On Tuesday, a report by the Senate Banking Committee came out with a similar recommendation for a single national securities regulator.It suggested it be located in the Ottawa area.

The Crawford Panelwas established in May 2005 by the Ontario government.