Tariffs-Free Regulatory Importing?
Asad Akhtar
developments. 8 Today, Ontario represents Canada’s largest capital market and is home to the
Toronto Stock Exchange (“TSE”) - the seventh largest stock-exchange in the world.9 The
principal regulator of Ontario’s capital markets is the Ontario Securities Commission (“OSC” or
the “Commission”).
The OSC is tasked with the administration and enforcement of the provisions contained
in the Securities Act,10 Commodity Futures Act and certain provisions in the Ontario Business
Corporations Act. Animated by the principles contained in the Act,11 the OSC’s primary
objectives are protecting the investing public, facilitating the efficient flow of capital and
maintaining public confidence in the capital markets.12 The OSC can seek administrative
remedies under the Act and certain criminal sanctions under the Criminal Code of Canada for
violations of securities laws.13
2. A Model for the Future - The Cooperative Capital Market Regulatory System
The federal government has attempted to address the lack of a federal regulator by asking
the Supreme Court of Canada, in the Securities Reference of 2010, if it could unilaterally impose
a national regulatory regime through its general branch of the trade and commerce power.14
Unfortunately, the Court deemed the proposal as ultra vires.15
8
For example, the mandatory registration of all salespeople and brokers dealing in securities created by the
Ontario’s Securities Frauds Prevention Act of 1928 remains a fundamental concept in existing regulation. The
Securities Act of 1945 also represented the first comprehensive piece of securities legislation in Canada.
9
Bank of Canada, “Canada’s Capital Markets: How Do They Measure Up?” (2010) at 35, online: Bank of Canada
. This assessment ranked stock exchanges
in accordance to their market capitalization.
10
RSO 1990, c S-5 [Securities Act] or [Act].
11
These principles are expressly enumerated in s.1.1 and s.2.1 of the Act.
12
OSC, “Our Role”, (12 March, 2015). Online: OSC .
13
Ibid.
14
Reference Re Securities Act, 2011 SCC 66, 3 SCR 837, [Securities Reference].
15
Ibid at para 130.
10