Top Court Allows Creation of Pan-Canadian Securities Regulator

(Bloomberg) -- Canada’s plans for an opt-in national securities regulator won the backing of the country’s top court.

The Supreme Court, in a unanimous ruling Friday in Ottawa, said the regulator can go ahead, as long as provinces such as Quebec aren’t compelled to join. The cooperative plan “does not purport to -- and in any event, cannot -- improperly fetter the legislatures’ sovereignty,” according to the court’s written ruling.

Five provinces including Ontario, home to the country’s major banks and biggest stock exchange, have backed the effort. Justin Trudeau’s government has advanced a plan first put in place by his predecessor Stephen Harper that aims to streamline oversight of financial markets by replacing the existing patchwork of regulations.

To contact the reporters on this story: Josh Wingrove in Ottawa at jwingrove4@bloomberg.net;Greg Quinn in Ottawa at gquinn1@bloomberg.net

To contact the editors responsible for this story: Theophilos Argitis at targitis@bloomberg.net, Chris Fournier

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