Jean st-gelais, a soft-spoken man of 45, does not intend to rock any boats in his new job as chairman of the Canadian Securities Administrators. Two words seem to sum up the two-year term he has just begun:
continuity and harmony. And, if the situation calls for it, a third word could be added: teeth.

Quebec often projects the image of an entity wanting to go its “distinct” way and the Autorité des marchés financiers could certainly project such an image. So, having the AMF’s president and CEO take the top CSA position may have caused some people to fear trying times ahead.

Such concerns, if they exist, can be put to rest. “I want to work in continuity with what people have already done at the CSA,” says St-Gelais, who reports that three cardinal values steer his actions: honesty,
transparency and collegiality.

St-Gelais — who takes over from Alberta Securities Commission chairman Steve Sibold, who steps down as ASC chairman in May — maintains his track record at the AMF, of which he became president and CEO in 2003 when the organization replaced the Commission des Valeurs Mobilières du Québec, displays his alignment with CSA priorities. “Quebec was often seen as different in the past, probably for good reason,” says St-Gelais. “But I think we’ve sent a clear message that we want to harmonize our rules with those of other provinces, and I think we’ve scored a few points on that count.”

For example, last July, the AMF recognized the Investment Dealers Association of Canada as a self-regulatory body in Quebec.
And, in January, the AMF joined the National Registration Database for financial intermediaries who want to do business on a national scale. “The other provinces had been there since 2003, but Quebec was dragging its feet,” says St-Gelais, who corrected the situation.

The dossier on internal control rules, patterned on the Sarbanes-Oxley requirements, is a key area in which, he says, “we found a solution that satisfies parties from all the provinces.” This was probably the project that best displayed St-Gelais’ leadership qualities to his provincial counterparts, earning him his present leadership of the CSA.

Alberta and British Columbia refused to adopt the U.S. rules, arguing that the Canadian market was not ready and that costs to corporations would be too high. “We said we didn’t know which was the best solution, but what was needed was one, single solution,” says St-Gelais.

“Finally, we managed to put one forward around which everyone rallied. For the most part, we would adopt the American rules, but approach the issue gradually, starting with the larger corporations and slowly working our way down to the smaller companies,” he says. “We will follow the American timetable, but with a six-month delay.”

This consummate public servant has had plenty of time to practise the teamwork for which his new job calls. After beginning his career in 1982 as a research assistant at the Bank of Canada, he completed a master’s degree in economics at Queen’s University and joined the Quebec Finance Ministry in 1985. There, for 18 years, he climbed his way up the ranks of two ministries, ending up as Administrator of State at the Executive Council Ministry before
taking the top post at the newly created AMF.

Does St-Gelais have a specific agenda for the CSA? Nothing in particular, he claims.
What he brings to the organization is more of a style than a program. “Each province is connected to its own environment, with its own priorities and constraints,” he says.
“The role we want to play is to take the best solutions offered by each individual province and bring them forward. It is in this spirit that I take up my mandate.”

St-Gelais has shown he can act decisively when required. The old CVMQ was often criticized for being inordinately soft on financial wrongdoers. “I don’t want to put the past on trial,” he says. “Sure, there’s been criticism, but what counts is the present.
We’re not aiming for spectacular coups, but my priority is the protection of the consumer.”

Nevertheless, it was under his watch that the AMF came out with its two most spectacular initiatives. In October 2004, it filed a $1.78-million claim, the largest to date in Québec, against Benôit Laliberté, founder of computer company Jitec Corp.,
on insider trading and stock manipulation charges.