Canadian court rules on CSA
18 January 2012 Ottawa
Image: Shutterstock
The Supreme Court of Canada forced the federal government back to the drawing board on the Canadian Â鶹´«Ã½ Act (CSA) when it unanimously found the legislation to be unconstitutional.
However, it did not rule that the concept of a national securities regulator is necessarily unconstitutional.
The Canadian constitution divides certain powers between the provincial and federal governments. The legal issue before the courts was whether the CSA falls under a provincial or federal head of power.
Established in all ten provinces and three territories, securities commissions supervise the Canadian securities industry, including stock exchanges, investment dealers, clearing agencies and investment advisors.
In May 2010, the federal government released the CSA, which provides for the harmonization of the existing provincial and territorial legislation into a single federal statute and creates a national securities regulator. At the same time as releasing the CSA, the federal government referred the question of its constitutionality to the Supreme Court.
Shortly after, both the Alberta and Quebec governments submitted similar reference questions to five-judge panels of their respective appeal courts. Both provincial appeal courts found the CSA to be unconstitutional.
However, it did not rule that the concept of a national securities regulator is necessarily unconstitutional.
The Canadian constitution divides certain powers between the provincial and federal governments. The legal issue before the courts was whether the CSA falls under a provincial or federal head of power.
Established in all ten provinces and three territories, securities commissions supervise the Canadian securities industry, including stock exchanges, investment dealers, clearing agencies and investment advisors.
In May 2010, the federal government released the CSA, which provides for the harmonization of the existing provincial and territorial legislation into a single federal statute and creates a national securities regulator. At the same time as releasing the CSA, the federal government referred the question of its constitutionality to the Supreme Court.
Shortly after, both the Alberta and Quebec governments submitted similar reference questions to five-judge panels of their respective appeal courts. Both provincial appeal courts found the CSA to be unconstitutional.
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