The Federal government proposal to centralize the securities regulatory apparatus to ensure uniformity of policies and regulations across Canada raises significant constitutional and economic policy issues. Sound public policy commands that implementation of that policy should move ahead only if there is a strong body of empirical evidence demonstrating that the performance of the current regime is significantly inferior to that of other countries — particularly the United States — and that a centralization of the regulatory apparatus is necessary to correct the situation.

The paper demonstrates that Canada’s decentralized securities regulatory regime ranks with the best in achieving the objectives of securities regulation.  In additin, it has shown flexibility, a great capacity to adapt to changing circumstances and an unrelenting ability to respond to particular industry or regional needs. It has also provided strong assurances against the hasty adoption of disruptive and costly regulations In contrast, a centralized system runs the risk of turning into a disruptive, costly and regrettable initiative that will not give Canadians what they expect, while erasing many of the benefits achieved so far.