British Columbia, Ontario, Saskatchewan, New Brunswick, Prince Edward Island, Yukon and Canada are jointly engaged in the implementation of the Cooperative Capital Markets Regulatory System. The Cooperative System is designed to streamline the capital markets regulatory framework to protect investors, foster efficient capital markets and manage systemic risk while preserving strengths of the current system.

The participating jurisdictions are inviting the governments of other provinces and territories to join the Cooperative System.

Benefits of the Cooperative System

The purpose of the Cooperative System will be to regulate capital markets in a manner that will:

  • foster more efficient and globally competitive capital markets in Canada and facilitate the raising of capital from investors across Canada and internationally through more integrated markets governed by innovative, responsive and flexible regulation on the basis of common standards reflected in cooperatively-developed regulations consistently applied;
  • provide increased protection for investors through a combination of more consistent and active compliance activities, more effective enforcement against misconduct and improved coordination with police and prosecution authorities both within and outside Canada;
  • integrate perspectives from all sectors and regions of Canada;
  • strengthen Canada’s capacity to identify and manage systemic risk on a national basis; and
  • enable Canada, through the single voice of a new cooperative capital markets regulator, to play a more empowered role internationally.

Planned implementation

The participating provinces and territories will seek the enactment of a uniform Capital Markets Act, which harmonizes and modernizes the aspects of capital markets regulation within their jurisdiction. The federal government will seek the enactment of a complementary Capital Markets Stability Act. Administration of these Acts will be delegated to a common regulator, the Capital Markets Regulatory Authority (CMRA).

The implementation of the Cooperative System will occur in several phases and the participating jurisdictions have agreed to use their best efforts to achieve implementation milestones on the following timeline:

  • by the summer of 2015, the publication of a revised consultation draft of the provincial/territorial Capital Markets Act together with the draft initial regulations, followed by the publication of a revised consultation draft of the Capital Markets Stability Act (Canada) at a later date, for public comment; and
  • on or before June 30, 2016, the enactment of the Capital Markets Act by each participating province and territory and the enactment of the Capital Markets Stability Act by Parliament.

Based on this timeline, the participating jurisdictions expect the Capital Markets Regulatory Authority to be operational in the fall of 2016.