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Securities Law

NIN 99/08 - Concept Paper on A Framework for Market Regulation in Canada [NIN - Rescinded]

Published Date: 1999-03-05
Effective Date: 1999-03-04

On February 24, 1999, the Canadian Securities Administrators ("CSA") released a concept paper prepared for the CSA entitled "A Framework for Market Regulation in Canada" PDF.

The concept paper contributes to the discussion regarding financial services regulation following the release of the report of the Task Force on the Future of the Financial Services Sector in Canada, also known as the MacKay Report.

The concept paper identifies a mismatch between the structure of the financial services industry in Canada as it has recently evolved and the structure of financial services regulation. Specifically, it notes that activities of financial institutions, which in some cases have become very similar to activities of securities registrants, can often be conducted under exemptions from securities legislation. As a result, these activities are not generally subject to equivalent standards of regulation as the activities of securities registrants despite the fact that they give rise to the same investor protection and market conduct concerns.

The concept paper proposes that market regulation of all financial services providers ("FSPs") (including banks, trust companies, insurance companies, securities firms and credit unions) be assumed by regulatory agencies of the provinces and territories. The provincial and territorial regulators would oversee market conduct and integrity, as well as consumer protection. They would coordinate their activities through the Canadian Securities Administrators and through the recently established joint forum of securities, insurance and pension regulators, to ensure an efficient and harmonized system of market regulation.

The concept paper is available on the British Columbia Securities Commission’s website PDF at in the publications section. A limited number of copies of the concept paper are available for pick-up from the Commission, upon request. Requests should be directed to:

Shandie Hertslet
Information Officer
British Columbia Securities Commission
200 - 865 Hornby Street
Vancouver, British Columbia V6Z 2H4
Tel: (604) 899-6670
Fax: (604) 899-6665
Toll Free: 1-800-373-6393

The Commission welcomes any comments on the concept paper. Please direct your submissions to:

Brenda Benham
Director, Policy & Legislation
British Columbia Securities Commission
200 - 865 Hornby Street
Vancouver, British Columbia V6Z 2H4

DATED at Vancouver, British Columbia, on March 4, 1999

Douglas M. Hyndman