The Council of Ministers responsible for securities regulation has reaffirmed their commitment to implementing the passport system, and announced that they will look at the idea of separating the adjudicative function.

In a statement, the Council notes that the next phase of the passport system will be fully implemented (by the jurisdictions that signed the 2004 Memorandum of Understanding Regarding Securities Regulation, including every jurisdiction except Ontario) in 2008 and will provide a single window of access for issuers and registrants across Canada.

The Council encouraged Ontario to join the passport system, noting that they believe that the passport system is the “easiest, fastest and cheapest way to significantly reform securities regulation in Canada. The passport system will allow a market participant to access capital markets across Canada by dealing only with its principal regulator.” It also noted that the passport system will provide an improved basis for free trade in securities with the U.S. and other G-7 countries.

Additionally, it said the ministers agreed to, “examine the potential benefits of separating and strengthening the adjudicative and regulatory functions in existing commissions based on Quebec’s model by establishing an independent tribunal system that will provide consistent decision-making in administrative enforcement of securities regulation in Canada.”

The Council also committed to developing practical performance measures to assess and advance the efficiency and effectiveness of the Canadian securities regulatory system.