By James Langton

(March 12 – 17:40 ET) – In a speech to the Canadian Club today, David Brown, Chairman of the Ontario Securities Commission spoke in favour of the proposed merger between the OSC and the Financial Services Commission of Ontario.

The Ontario government proposed the merger last fall, followed by a brief consultation with the industry. Although the proposal was intended to be implemented quickly, it didn’t make the docket last year and has been held up by the recent resignation of Finance Minister Ernie Eves. His replacement, Jim Flaherty, is still considering whether to go ahead with the proposal.

“In my view the proposed merger of the OSC and FSCO is a necessary step in the evolution of financial services regulation,” said Brown. “The industry has been remodeling itself. Shouldn’t the regulatory system be doing the same?”

He pointed to harmonization in other jurisdictions, such as the U.K., Australia, Germany, Japan, and Ireland. “Ontario’s proposal is in keeping with the latest global thinking,” noted Brown.

Brown says a single agency, the proposed Ontario Financial Services Commission, will provide better investor protection and it will simplify financial service regulation. He suggested that, “consistent purchase disclosure documents will make it easier to compare products across sectors. Consistent proficiency standards will apply to your insurance agent, pension consultant, financial planner, securities salesperson and mutual fund salesperson.”

Brown noted that opposition to the proposed merger has been less than expected. “In fact, most of the insurance and pension industry representatives we talked to have expressed a desire to contribute to policy-making for their industry in a transparent way, and to be involved in the early stages of rule and regulation making.”

He argued that securities, many forms of insurance, and pensions, are all investment products at their core. “It’s time to treat them as such. It’s time to eliminate regulatory gaps and overlaps. It’s time to end confusion over who regulates what,” he said, calling on the audience for their input.