(February 7 – 17:00 ET) – As expected, Finance Minister Paul Martin today reintroduced legislation to reform the policy framework for Canada’s financial services sector.

The new legislation replaces Bill C-38, which died on the order paper last fall.

The package is substantially the same legislation as was originally tabled, although it does include a number of technical amendments and clarifications based on comments made before the House of Commons Standing Committee on Finance.

The legislation aims to promote more competition both domestically and from foreign players, it introduces the holding company structure, proposes a new merger review process, introduces some consumer protection measures and opens the payments system to more players such as fund companies.

“Getting this legislation passed quickly would implement important reforms for a sector that is a key contributor to the overall performance of the Canadian economy,” Martin said. “It would ensure that Canadian financial institutions remain internationally competitive, that consumers are adequately protected and that they continue to receive the highest quality services at the best possible price.”

Secretary of State Jim Peterson added that the legislation would also “increase competition in the domestic marketplace by encouraging new entrants through liberalized ownership rules, by expanding access to the payments system, and through more flexible regimes for credit unions and foreign banks.”
-IE Staff