News Release

Vancouver – BCSC Chair, Doug Hyndman, sent his letter to the Wise Persons Committee today, calling for a system of cooperation between Canadian securities regulators that he says is achievable now.

“We submit that the best way to achieve significant, timely improvement in Canadian securities regulation is to adopt a regulatory passport system based on the concept of mutual recognition among jurisdictions,” Hyndman said.

Under a mutual recognition passport system, each market participant would have only one regulator and one set of rules to follow.

For example, an Ontario-based company that complies with the Ontario rules would be in full compliance with the regulatory regime in BC, and BC would not place any additional obligations. The Ontario company could then issue securities to investors in BC by complying only with the Ontario rules for offering and disclosure. By the same token, registered dealers and advisers in BC with branch offices in other parts of Canada would only have to comply with BC law to become registered to deal with clients elsewhere in Canada.

“Unlike other reform proposals, a passport system will actually work in the real world of Canada today.”

The full letter is posted on the Commission’s website at http://www.bcsc.bc.ca
Mutual Recognition Passport System at a glance: http://www.bcsc.bc.ca/bcproposals/passport_system.asp (link no longer operational)