The Ontario government continues to express support for a national securities regulator in its latest budget, but also promises legislative changes to bolster the Ontario Securities Commission (OSC) and boost investor protection.

Notwithstanding the fact that the effort to establish a cooperative capital markets regulator (CCMR) missed its second deadline for producing enabling legislation earlier this week — the initial deadline of January 31 was extended to April 30, yet the legislation has yet to be released — Ontario says that it is still committed to its deal with British Columbia and the federal government, which was announced last fall, to create a cooperative national regulator.

“Ontario is working actively with British Columbia and the federal government to meet the agreed timelines for this initiative, under which the CCMR would become operational by July 1, 2015,” the government says in the budget released Thursday, adding that they continue to invite other provinces to participate in the CCMR.

In the meantime however, the government says that it’s also planning to propose changes to update securities laws and legislation, including amendments to update disclosure requirements for exchange-traded funds; to suspend the limitation period for secondary-market civil liability claims while investors seek leave to proceed with their claim; expanding the scope of insider-trading and self-dealing provisions in relation to investment funds; and, broadening the definition of “market participant”.

Additionally, the budget indicates that the government is planning changes to securities and derivatives legislation that facilitate the extension of freeze orders; and, broaden the OSC’s ability to preserve assets in enforcement actions.

“These changes would help modernize and strengthen Ontario’s securities regulatory framework, enhance the competitiveness of Ontario’s capital markets and facilitate increased investment,” it says.

As for other sectors of the financial industry, the government says that it intends to appoint an expert committee to develop recommendations for financial planning regulation — a process that it began last year with consultations on possible policy approaches to the largely unregulated world of financial planning.

Additionally, the government also indicates that it intends to amend insurance legislation to require that long-term disability benefits are insured. A review of credit union legislation is promised for the fall; and it says that it will also propose to prohibit credit unions from promoting P&C insurance products online, which they are not permitted to promote in their branches.

The fate of the budget remains uncertain. The stage looks set for a June election in Ontario as both NDP and the Progressive Conservatives have said they would vote against the budget proposed by the minority Liberal government.