Edmonton... While challenging the federal government’s move to form a single federal securities regulator, Alberta continues to act to strengthen its existing securities laws.
Bill 13, the Securities Amendment Act, 2010, will bring Alberta in line with international reporting practices, as well as further harmonize and modernize the province’s securities legislation in keeping with its commitment to the passport system of provincial securities regulators. The passport system has been operating in Canada since September 2009.
“This legislation further strengthens a provincial-based system that is working well in Alberta and in Canada, and that ranks second internationally according to the Organization for Economic Co-operation and Development, ahead of the United States and the United Kingdom,” said Ted Morton, Minister of Finance and Enterprise. “It is a system that serves Alberta companies and investors well, and these amendments make it better.”
Amendments in Bill 13 support Canada’s conversion to International Financial Reporting Standards, or IFRS, for public companies on January 1, 2011; propose a new regulatory oversight framework for credit rating organizations that is in line with international standards; strengthen regulatory enforcement; and ensure that Alberta’s registration regime continues to be harmonized with other Canadian jurisdictions.
Since 2005, Alberta has been a leader in the development of the passport system for securities regulation based on highly harmonized securities laws. Under the passport system, market participants who meet regulatory requirements in one jurisdiction would automatically meet the requirements in all other passport jurisdictions. The passport system for securities regulation was fully implemented on September 28, 2009.
The Alberta government will continue its constitutional reference to the Alberta Court of Appeal to challenge the authority of the federal government to create a single federal securities regulator. Alberta believes securities regulation is a matter of provincial jurisdiction, as it has been historically.
Government is also concerned that federal intrusion in this area could set a precedent for federal intrusion into other areas of provincial responsibility, including the rest of the financial services sector, such as pensions, insurance, credit unions and other provincial financial institutions.
In addition to its own reference, Alberta will also intervene in support of Quebec’s constitutional reference to the Quebec Court of Appeal.
The Alberta government has a clear plan for a strong economic recovery. An important part of The Way Forward is maintaining support for programs and services Albertans need most, such as health care, education and safe and vibrant communities.