Ontario is proposing a plan for the provinces to build a single regulator.

In a discussion paper released Thursday outlining its proposal for securities regulation reform in Canada, Ontario said it envisions the provinces working together to move to a new securities regulatory framework that features a single securities regulator, a common securities law and a single fee structure.

“We believe a single national securities regulator would make Canadian markets more competitive and help build a strong foundation for prosperity for people,” said Gerry Phillips, Ontario’s minister responsible for securities regulation.

“Our intention is to build consensus on our proposal’s key features and use that as the basis to move forward and implement a modern new securities framework in Canada,” Phillips said in a breakfast speech to the Economic Club of Toronto.

“I should always say ‘single’ regulator – strike the word ‘national’ out because that’s a fairly provocative term,” Phillips told a questioner after his speech.

The proposal says Ontario would consider entering into a passport system with other provinces as part of a clear transition to a single regulator, on the conditions that there is:

  • an agreement to create a common securities regulator within two to four years;
  • an agreement that a common securities act and a common set of regulations would apply within one to two years;
  • an agreement to put a single fee structure in place within two years, with fees set on a cost-recovery basis, and;
  • an implementation task force struck that would report on a regular basis to a ministers council (comprised of provincial and territorial ministers responsible for securities regulation), with full-time, dedicated resources to develop the work plan and common body of securities law.



The transition passport would not take effect until the common body of securities law is in place. The transition passport would include a two-year sunset clause to ensure sufficient time to put the common regulator in place. It also would include mechanisms to ensure consistent interpretation and application of the common set of securities laws in the period before the common regulator is put in place.

The province said it envisions common regulator that would be an entirely new agency with a mandate that reflects the needs of capital markets and provides appropriate protection for investors across Canada. The agency would have strong local offices to deliver services close to where businesses and investors are located. A strong local or regional presence would enable the agency to build on existing specialized regulatory expertise in delivering services, developing policy and conducting investigations and enforcement.

In the weeks ahead Ontario will review its proposal in discussions with the other provinces and territories and industry stakeholders.

Other provinces – especially Quebec, Alberta and British Columbia – favour a so-called passport system, under which the 13 provincial and territorial securities commissions would work more closely to harmonize their separate activities.