Four of Canada’s securities regulators are meeting with some of Bay Street’s leading investment and business people in Toronto to explain how the securities passport system will improve capital-raising and simplify securities regulation across the country.

In a session today at the TSX Broadcast Centre (in Toronto, Autorité des Marchés Financiers President & CEO Jean St-Gelais, Manitoba Securities Commission Chairman Don Murray, Alberta Securities Commission Chairman Bill Rice and British Columbia Securities Commission Chairman Doug Hyndman present how the Passport System — a set of harmonized regulatory requirements consistently interpreted and applied throughout Canada — will work.

The Canadian Securities Administrators’ (CSA) Proposed National Instrument 11-102 Passport System is part of the commitments set out in the memorandum of understanding regarding securities regulation among the governments of all provinces and territories, except Ontario.

“We want to give the investment industry and business people the facts about how the Passport System is a practical, achievable and significant improvement in how we regulate securities in this country,” says Hyndman.

“When we implement passport, market participants will get faster and simpler access to Canada’s capital markets because they will be allowed to deal with only one regulator and one set of harmonized requirements,” says St-Gelais.

The passport will allow someone to clear a prospectus, register as a dealer or adviser, or obtain a discretionary exemption from the home province regulator and have that clearance, registration or exemption automatically apply in all other provinces and territories. It also ensures that public companies are subject to only one set of harmonized continuous disclosure requirements.

All provinces, except Ontario, are currently fielding comments about the proposal for implementing the second phase of the passport system.

“With the comment period for this proposal ending today, we want to make sure that we hear from as many market participants as possible so coming here to Bay Street and answering their questions directly is important,” says Rice.

The proposed rule is expected to be finalized by the end of 2007 and implemented in stages starting in early 2008 as the proposed new national rules on prospectus requirements (NI 41-101) and registration requirements (NI 31-103) are finalized.

“This passport is a Pan-Canadian system that can simplify regulation and benefit businesses and investors in all provinces and territories,” said Murray. “Although the Ontario Securities Commission is not participating in the proposal, we have set it up so Ontario can join if it makes the necessary legislative changes.”

The proposed rule and related documents are available on various CSA members’ websites. The comment period ends today, May 28, 2007.