Speaking to the Greater Ottawa Chamber of Commerce last night, John Manley, Deputy Prime Minister and Minister of Finance, addressed the issue of investor confidence in the capital markets.

Manley reiterated his position that Canada must review the new U.S. Sarbanes-Oxley rules carefully and, “ask ourselves if they are based on sound public policy. If so, could some of their reforms be part of a made-in-Canada solution?”

He noted that Ottawa is reviewing the Canada Business Corporations Act and legislation related to federally regulated financial institutions. “We’ll make them stronger and better suited for today’s investment world,” he pledged.

He also said that more needs to be done in the area of enforcement. “We need to recognize the importance of effective enforcement in contributing to trust and confidence in markets, and we need to ensure that our system provides a real deterrent against unethical conduct and corporate misbehaviour,” he said. “But laws alone are not enough — they will not help if they are not enforced. A higher priority in Canada must be given to investigating offenders and prosecuting them,” Manley added. He threw out the idea of establishing a specialized unit to investigate and assist in the prosecution of serious securities offences.

Manley also addressed the fragmented securities regulatory system in Canada. He said that he supports Harold MacKay’s recommendation that the federal government and interested provinces establish a Wise Persons’ Committee to study the issue. “We are acting now to transform Mr. MacKay’s recommendation of a Wise Persons; Committee into reality.”

Manley said he hopes to get the committee launched in the near future. “And on this vital national issue, I will work with any stakeholder who wants to make the system work better. I think we can all agree the time for talking is done — it’s time to move forward.”