Three of the most powerful securities regulators in Canada discussed their combined efforts to improve the securities regulatory system at the Investment Dealers Association annual conference in St. Andrew’s by-the-Sea, N.B. Tuesday.

In a panel discussion, Steve Sibold, chair of both the Alberta Securities Commission and the Canadian Securities Administrators, David Brown, chair of the Ontario Securities Commission, and Pierre Godin, chair of the Quebec Securities Commission, talked about their shared goals.

B.C Securities Commission chair, Doug Hyndman, was supposed to appear on the panel, too, but he cancelled. Hyndman said that he declined to make the trip from Vancouver because of lack of time.

Still, Hyndman’s absence highlighted the extent to which B.C. is becoming the odd man out in the drive to improve the regulatory system — primarily through increased harmonization via Sibold’s efforts to establish a Uniform Securities Law (USL), and legal delegation between the provinces.

B.C. maintains that the problem is not so much the system, but the rulebook, and it is pursuing a move to a more principles-based model.

The increased complexity of the was highlighted by the QSCs Godin, who hauled out all of the various rules and laws it must oversee, creating a 13-inch stack of rulebooks on the panel’s desk.

He said that back in 1990, the stack was less than half as high, at its current growth rate, could be expected to reach between 17 inches and 20.5 inches by 2010.

Godin said that the market is reaching its limit in systemic complexity, and he pointed out that it will only get worse if B.C. chooses to go its own way. He sees the USL as the “best first step”.

The OSC’s Brown said that he agreed with Godin that it is important for the Canadian Securities Administrators to work together. He suggested that B.C.’s approach, without national buy-in, is going to make the system worse rather than better.

Asked about the OSC’s proposed Fair Dealing Model, which is so far just an OSC effort ˜ Brown said that it had its foundation in the evolving market, and was developed in consultation with the industry. But, it will have to become a national model, or the OSC will have to look for an alternative, he conceded.

Also, Brown noted that the CSA, apart from B.C., will be publishing its three new rules aimed at improving investor confidence later this week. He said that he hopes the rules will be final by the end of September. These rules will address audit committees, CEO/CFO certification of financials, internal controls and the Canadian Public Accountability Board.

Hyndman has indicated that B.C. will be publishing a notice of its own, explaining why it is taking a different route.