Ottawa and other provinces can now set up a national securities regulator after the Supreme Court ruled it constitutional to do so.
According to The Canadian Press, the high court released a unanimous ruling saying it is constitutional to draft a legislation that will establish a countrywide regulation of stocks, bonds and other investments.
The government and the provincial regulators have been mulling over the idea since the 1930s and the decision by the Supreme Court is believed to be crucial in making it a reality.
For many of the supporters of the said plan, the establishment of a national securities regulator will be able to minimize red tape, boost investor protection and make enforcement more consistent.
According to reports, federal governments including British Columbia, Saskatchewan, Ontario, New Brunswick, Prince Edward Island and Yukon have already signed a deal to create a new model for the national regulator. The plan will include the dynamics of the regulating body as well as its composition, policies and rules.
In 2011, the Supreme Court noted that a draft bill creating a new regulating body strayed beyond federal jurisdiction, given that provinces and territories have respective authorities on their own securities regulation policies.
In fact, the Quebec Court of Appeal said last year that the plan to create a national regulator is unconstitutional.