The group representing Canada’s professional investment counselors says it supports the principles-based system proposed in the “B.C. model” for new securities regulation.

However, the Investment Counsel Association of Canada also says it believes strongly that the goal of harmonization should be a key component of any proposal “and a top priority for our industry.”

The British Columbia Securities Commission has proposed draft legislation, entitled “Securities Regulation That Works.”

The model fundamentally shifts the basis of regulation from specific rules to rely more on general principles. It also proposes that regulations deal with firms rather than individual representatives. As well it would do away with jargon, requiring that both the regulations and the disclosure that market players give their investors be in plain language.

The proposal would apply to B.C. only; other provinces would have to adopt it. The Ontario Securities Commission is strongly opposed to the B.C. plan.

“The ICAC’s concern is that the BC Model, like any solution that is less than national in scope, may conflict with the other provincial and territorial jurisdictions and add a new burden and layer of complexity,” says Timothy Burt, ICAC president.

“We strongly urge the B.C. Commission and the other members of the Canadian Securities Administrators to take significant steps to harmonize, simplify and streamline the rules and regulations.”

The ICAC said in a letter to the BCSC that it favours a number of the approaches contained in the B.C. model, including the regulation of firms.

“We believe that a number of the concepts represent progressive and innovative ideas to update the current regulatory system. We again reiterate our previous comments that all members of the CSA take significant steps to harmonize, simplify and streamline the applicable rules and regulations.”