News Release

Victoria - Investor protection will be enhanced and red tape will be reduced as a result of a British Columbia government decision to continue to work with other provinces and territories to support the regulatory “passport” agreement, Attorney General Wally Oppal announced today.

“This week’s meeting in Victoria of ministers responsible for securities affirmed the commitment of most provinces and territories to harmonize and streamline our legislation,” Oppal said. “It is now clear that the provincial-territorial agreement offers the best way for Canada to improve protection for investors and reduce regulatory burden on the securities markets.”

A Memorandum of Understanding Regarding Securities Regulation, dated Sept. 30, 2004, has been signed by ministers from most provinces and territories to establish a Canadian passport system for securities regulation and to harmonize and streamline laws across Canada. B.C. Securities Commission chair Doug Hyndman welcomed the Province’s decision.

“This will allow us to focus our efforts on the passport system,” Hyndman said. “We intend to work with the government and our colleagues in other provinces and territories to make Canadian regulation more efficient and effective, particularly by seeking national acceptance of an approach based on clear principles and on regulatory requirements and processes designed to achieve results.”

B.C. passed a modern, innovative Securities Act in 2004, but has not yet brought it into force. Government initially delayed implementing the act to give industry more time to prepare for the changes. Since then, provinces and territories have made significant progress toward the passport system.

Oppal said that, based on recommendations made by the commission, implementation of the B.C. act is not expected before Dec. 31, 2007 to allow regulatory officials to fully participate in the passport system.

 “The goal of this passport system is to provide a single window of access to capital markets in all participating jurisdictions,” Oppal said. “We will continue to work with the rest of Canada to streamline and harmonize requirements.”

Media contact:

Backgrounder

• The British Columbia government has adopted a strategy to pursue reforms to make Canadian regulation more efficient and effective, particularly by seeking national acceptance of an approach based on clear principles and on regulatory requirements and processes designed to achieve results.
  
• The government has decided to defer implementation of the new Securities Act until at least Dec. 31, 2007, and continue to fully participate in the development and implementation of the “passport system” and harmonized and streamlined legislation.
  
• Under the passport system, a market participant will be able to access capital markets across Canada by complying with its own province’s laws and by dealing with its own province’s regulator. The passport system will reduce red tape for market participants. A harmonized legal structure across Canada will enable them to comply with the laws and obtain decisions in every province in which they want to do business.
  
• British Columbia remains committed to results-based regulation that costs less, is more effective in protecting investors, and promotes competitiveness and innovation. Working within the provincial-territorial reform efforts is the best way at this time to achieve better regulation.
  
• The British Columbia Securities Commission will also continue moving forward administratively to reform regulatory processes in much the same way as it would have done under the new legislation.
  
• Provincial and territorial ministers are committed to making improvements to the Canadian securities regulatory framework. To formalize their commitment to improved securities regulation, ministers responsible for securities regulation in all provinces and territories, except Ontario, signed a Provincial-Territorial Memorandum of Understanding Regarding Securities Regulation (MOU) dated Sept. 30, 2004. 
  
• The MOU provides for meaningful and timely improvements to the current system, including:
  • A “passport system” for securities regulation, resulting in a single window of access to capital markets in participating provinces and territories;
  • Highly harmonized, streamlined and simplified securities laws;
  • A Council of Ministers to facilitate change and ongoing co-operation;
  • A review of regulatory fees charged in the context of the passport system; and
  • A commitment to explore options for further reform.