Ontario Government Receives Report on Commodity Futures Act
Recommendations on Improving Regulatory Framework And Enhancing Investor Protection Welcomed.
Recommendations on Improving Regulatory Framework And Enhancing Investor Protection Welcomed
TORONTO. Minister of Government Services and Minister Responsible for Securities Regulation, Gerry Phillips today tabled the final report of the Commodities Futures Act Review Committee.
“I want to thank all of the committee members for the hard work and commitment that went into preparing this report,” said Phillips. “They have put forward recommendations designed to make our regulatory system more efficient and to promote increased investor confidence and protection which will be carefully reviewed and considered”.
The committee, composed of leading practitioners, lawyers and regulators, was appointed in May 2005 to undertake a comprehensive review of Ontario’s commodity futures legislation. It was chaired by Carol Pennycook, Partner at Davies, Ward, Phillips & Vineberg LLP and former chair of the Ontario Securities Commission’s Commodity Futures Advisory Board. Other members included John Clark (Chair, President and CEO, JCClark Ltd.); Stephen Elgee
(President, Faversham Holdings Inc.); Margaret Grottenthaler (Partner, Stikeman Elliott LLP); Paul Moore (former Vice Chair, Ontario Securities Commission) and Robert Warner (Director of Operations, Canadian Derivatives
Some of the report’s key recommendations include:
- Ensure compatibility with regulatory regimes in other relevant jurisdictions;
- Adopt a core principles approach to the regulation of exchanges and other market participants; and
- A role for securities regulation of contracts that are not transacted on an exchange (over-the- counter or OTC derivative transactions) and that involve retail investors.
The committee’s report will be referred to a legislative committee that will review the report, hear the opinions of interested parties and report back.
“Since the Commodity Futures Act was originally introduced in 1979, advances in technology together with the globalization of financial activities have resulted in dramatic changes in capital and commodities markets. The importance of keeping pace with these changes underscored the need to review and update the Commodity Futures Act at this time,” Minister Phillips said.
“This report supports our commitment to vibrant capital markets underpinned by a regulatory system that serves today’s and tomorrow’s investors well”.
To read the final report visit our website at www.mgs.gov.on.ca
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