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The MBABC reviewed BoTh the dra federal Capital Markets Stability Act (CMSA) and the dra provincial Capital Markets Act (PCMA), which will form the legislative framework for the new harmonized securities structure in the provinces of British Columbia, Ontario, New Brunswick, Ontario, Prince Edward Island and Saskatchewan. is new securities structure will replace the BC Securities Act and the BC Securities Commission, which currently regulate the capital raising activities of mortgage investment corporations and syndicators. It is therefore imperative that we participate in the consultation process of this new legislation to identify any potential issues that may impact our mortgage industry. Both Acts appear to be draed consistent with the stated goals and with the intention of keeping each piece of legislation in compliance with the constitutional division of powers. Overall the proposals have the potential to serve Canadians well. However, MBABC does have some reservations and concerns with both the consultation process and the legislation, which were communicated to the government representatives undertaking the consultation process. In particular, many stakeholders with whom we spoke were not aware of the existence of the consultation process. Even the MBABC only happened to come across the notice of consultation and then followed up to find the key materials. More needs to be done to make the public aware of the existence of the consultation process in order to ensure that feedback on the proposed legislation represents the positions of the variety of stakeholders. MBABC suggested considerably more effort be made to make the public aware of all further opportunities to provide consultation. Presumably the decisions to pursue the present course are made in a reasoned manner based on empirical facts. We have been unable to locate disclosure of such facts. Because stakeholders are being asked to provide feedback in the absence of having access to any such facts, any feedback is necessarily deficient. e basis on which any further decisions are based should also be disclosed. For example, if consideration is to be given to limit investment concentrations or caps in any way, the logical and empirical basis for those decisions needs to be fully disclosed. Failure to base decisions on such logic and empirical evidence and to disclose the logic and evidence can cause needless harm to individuals and market places, foster cynicism and make the decisions look arbitrary. Both Acts are, as has become the custom for legislators, couched in very broad language. Given the broad language in the Memorandum of Understanding ( MOU) and the two Acts, any responding feedback is logically limited to being broad. Anyone providing feedback is le to imagine what details might be in later regulations and policies. We suggest that for consultation to be meaningful, it must be solicited at the stage where the regulatory scheme is appropriately detailed. If the details are not to be available until the implementation stage, then it is imperative that feedback be sought at that stage and with the details disclosed. Balancing national consistency with regional diversity We are a large country comprised of varying markets with distinct needs. It is unlikely that a single piece of legislation can be an appropriate fit for each of the provinces. Each province needs to be allowed to address its specific issues and concerns within its borders. While the MOU provides (in principle) for this to consultationprocess New Securities Structure New legislation leaves room for B.C. regulation of industry By Samantha Gale 28 | winter 2015 mbabc.ca MortgageBroker

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