Quebec’s Minister of Finance, Michel Audet, reiterated his province’s opposition to any attempt to create a national securities regulator in a speech today.

Speaking to the International Finance Club of Montreal, Audet declared that regardless of the party in power in Quebec, the province’s position has always been that it will not accept a federally-imposed national regulator. Instead, he called on the federal government and the lone holdout to the passport model, Ontario, to join with the other provinces in adopting the passport model and seeking greater harmonization of securities rules.

Audet suggested that it opposes a single regulator because it would be a lengthy, costly, risky undertaking, and the benefits of the idea have not been demonstrated. He noted that the federal government is under tremendous pressure from the business community, specifically the big banks, to set up a national regulator.

“However it is crucial that governments take the public interest into account and consequently be attentive not only to the needs and interests of the largest industry players,” he said. “But also to those of smaller issuers and investors that make up the bulk of the Canadian financial market.”

Audet suggested that a national regulator won’t properly deal with the needs of the Canadian market, and it claimed that it’s important to retain local expertise. He suggested that a federal proposal that imagines regional offices with decision-making power will just add another costly layer of bureaucracy.

He also sang the praises of the passport system which is to be adopted Sept. 19 in most jurisdictions apart from Ontario. And, he noted that the provinces continue to work on harmonizing and simplifying their rules, with the aim of proposing more harmonized rules by the end of 2006. It is focusing this effort on registration categories, prospectus and continuous filing requirements and mutual funds.