The government of Saskatchewan is considering an Ontario-style reorganization of its financial regulators to form the Saskatchewan Financial Services Commission.

Saskatchewan is considering a proposal to establish a single regulatory body with broad responsibilities for the regulation of the financial services including lending, securities, pensions, insurance, deposit taking, trust services and other financial products and services.

The Department of Justice has published a paper “Reorganizing The Financial Services Regulators In Saskatchewan: The Saskatchewan Financial Services Commission”. The objective of this paper is to present an organizational model and legislative approach for your review and comment.

In Saskatchewan, three regulators protect the interests of consumers in the areas of financial services, securities, insurance, trust and loans, credit unions and pension benefits: the Saskatchewan Securities Commission, the Financial Institutions Section of the Consumer Protection Branch and the Pension Benefits Branch.

The proposed new organization will have significant powers, including the power to make certain regulations under the Securities Act. The paper says it must be both independent and connected to the financial marketplace, it must be able to adapt to the changing marketplace and be flexible enough to apply appropriate regulatory oversight. It must retain sector-specific expertise, balance, and a focus on organization.

The Saskatchewan Financial Services Commission would consist of no more than seven members, including a chair, appointed by the Lieutenant Governor in Council following Cabinet’s recommendation. Initially, the responsibilities of the commission would be in the nature of “oversight” with the capacity to undertake direct regulation if authorized by regulations. It would be responsible for the general conduct of its hearings and other business.

A ministerial advisory committee is also under consideration to provide a forum for the consideration of financial services issues. The Minister’s Advisory Committee would include representation from industry, self-regulatory organizations and consumers. This committee would be established through legislation. It would advise not only the Minister but would also provide important feedback and commentary on future developments and regulatory issues to the commission.

It is seeking comments to Keith Laxdal, Associate Deputy Minister by December 21. The government hopes to present the initiative to the Legislative Assembly, possibly during the 2002 session.