For many years, the Canadian government has wanted to install a national securities regulator in place of the many provincial regulators now handling that role. As I previously discussed in detail here, in 2009 a federal panel in Canada recommended that the country establish a single securities regulator "that can move with greater speed alongside other domestic and international regulators to address financial instability.” In December 2011, however, the Supreme Court of Canada unanimously held that the government's proposed legislation was unconstitutional. In Canada, securities regulation has long been considered to be an area squarely within provincial jurisdiction, leaving Canada as the only country in the G20 without a national securities regulator

Yesterday, the Canadian government decided to take a new approach to the issue, stating that it will join with the provinces of British Columbia and Ontario to form a "cooperative" agency. Ontario is Canada's main financial center. The three governments have asked all provinces and territories to participate, and plan to have the new agency operational by July 1, 2015. 

It is quite clear, however, that not all of Canada's provinces will participate. Quebec and Alberta, in particular, have been vocal opponents of a national securities regulator, and both quickly came out against the planned cooperative agency. Senior government officials in Quebec called it “unacceptable” and said the province might go to court against “this new offensive launched by the federal government.” Alberta Premier Alison Redford said a number of concerns would have to be resolved before Alberta would participate--the province contends that a provincial securities regulator is needed to protect its oil and gas industry, the Montreal Gazette reports.