The Canadian Securities Administrators has published a strategic plan that highlights increased harmonization and mutual reliance as a national regulatory solution, rather than a national commission.

The plan draws attention to the two major challenges facing the securities industry: regulatory burden, and increased competition and innovation.

According to the CSA regulatory burden is caused by differences in regulatory requirements among jurisdictions, separate decision-making processes in each jurisdiction, and the volume and complexity of regulatory requirements. “CSA members must overcome the differences in our approach to regulation and work together to develop a national system of simplified and harmonized securities regulation,” they say.

As for increased competition and innovation, the regulators say, “To help keep our markets competitive, we must be efficient, effective and innovative regulators, and have a regulatory system that is flexible and adaptable.”

The CSA say that they will respond to these challenges with a broad strategy of regulatory reform, implemented through three parallel processes: Uniform Securities Legislation, responsive regulation, and regulatory reform.

The USL is intended to harmonize regulatory requirements and incorporate as many reforms as possible, while maintaining some scope for local initiatives.

The CSA say “We believe this strategy will help us achieve our mission of developing a national system of harmonized securities regulation, policy and practices while retaining the necessary regional flexibility and innovation.”