This late-in-the-day announcement from the government is interesting. (See below). Faced with some prospective backlash from the provinces about setting up a federal securities regulator, Ottawa is asking the Supreme Court of Canada whether it has the constitutional authority to do so.
Some provinces -- Quebec, notably, among them -- have also urged the federal government to go to the Supreme Court about its Senate reform proposals. There is an argument out there that any changes to the Senate, including fixed terms and elections, require approval at the provincial level -- and that the federal government can't go it alone on minor repairs to the Red Chamber.
I wonder if the Conservative government, now asking the Supreme Court about the securities regulator, will also consider asking the court to weigh in on the Senate-reform question?
Here's today's announcement:
OTTAWA, October 16, 2009 – The Honourable Rob Nicholson, P.C., Q.C, M.P. for Niagara Falls, Minister of Justice and Attorney General of Canada, today announced that the Government will seek the opinion of the Supreme Court of Canada as to whether Parliament has the constitutional authority to enact and implement a federal securities regulatory regime. As part of this reference, the Government will submit to the Supreme Court of Canada draft legislation, expected to be ready in spring 2010.
“The Government strongly believes that Parliament has the constitutional authority to enact a comprehensive Federal Securities Act and is initiating preparatory steps in that direction,” said Minister Nicholson. “In coming to this view, the Government is supported by many of Canada’s foremost constitutional experts. However, for greater certainty, we will be asking the Supreme Court for its opinion, which is why we are proceeding with this reference.”
The Government is mindful of the importance of having a definitive answer on the issue. An opinion from the Supreme Court of Canada will provide legal certainty to all provinces and territories, and market participants, and thus protect the integrity of a Canadian securities regulatory regime.
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