'Canada Steps Up' - Task Force to Modernize Securities Legislation in Canada: Recommendations and Discussions

Abstract

The Task Force to Modernize Securities Legislation in Canada released its report entitled ‘Canada Steps Up’ in October 2006. Its 65 recommendations focused on bringing Canadian securities law into the 21st century, enhancing Canada’s competitiveness in the global marketplace and eliminating its higher cost of capital relative to the US. This article reviews and analyses the Task Force’s recommendations in five critical areas: cost–benefit analysis (CBA), improving access to capital markets, the use from electronic disclosure systems and financial literacy, the regulation of hedge funds and finally, enforcement. This article also reviews two issues that received significant Task Force discussion, but were left as ideas for consideration, namely an insurance scheme for misinformation in the capital markets and subsidizing securities analysis to improve analyst coverage of small firms. Finally, conclusions are drawn from the Task Force’s deliberations and recommendations and next steps are suggested.

Keywords: Securities, Legislation, 'Canada Steps Up' report, Securities Task Force