Minister Sweeney supports meeting of ministers to discuss securities regulation

George Sweeney, Minister of Government Services and Lands, says he supports the initiative of ministers in Ontario, Quebec, Alberta and British Columbia to develop an action plan that will address the key issues currently faced by market participants and securities regulators in Canada.

"I support working together to find a common goal. In fact, in order to facilitate dialogue and determine a plan of action throughout the country, last year our department proposed a minister�s meeting to discuss securities regulation," said Minister Sweeney.

At that time, the department proposed a regulatory model similar to the U.S.A., with a national regulator dealing with national issues such as regulation of stock exchange activity and provincial/territorial regulators dealing with local issues. Mr. Sweeney says he is also prepared to investigate other models of regulation, such as the Passport Model. The Passport Model is the model in place in Europe, whereby an issuer deals with only one jurisdiction and the other jurisdictions rely on the regulatory activities of that lead jurisdiction.

The minister is open to suggestions from other jurisdictions. He says that "our government is willing to investigate all options, as long as we are able to identify and implement whichever model will best suit Canada."

The minister feels that it is important to put the proper regulatory model in place across the country. At the same time, it will be important that any acceptable model be adaptable to a local service delivery.

"Provincial regulators are best equipped to deal with enforcement, market conduct, consumer education and raising of capital on a local basis, and therefore any regulatory system must provide for a strong local regulator concentrating on those areas," said Minister Sweeney.

Media contact: Jeff Mackey, Communications, (709) 729-4860.

2003 02 27                                         4:20 p.m.