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The Conservative government that formed the task force and appointed Soliman as its chair has proved to be one of the most hands-on in recent years when it comes to the OSC. In 2018, for instance, then finance minister Vic Fedeli issued a public statement opposing a planned OSC ban on certain mutual fund fees. The government then pushed the regulator to overhaul its rules and processes with an eye to reducing the regulatory “burden” on companies and individuals.
In opening remarks at Wednesday’s conference, Ontario Finance Minister Rod Phillips said the coronavirus pandemic had accelerated the need to modernize the regulatory system, noting that the government had set an “ambitious” timeline of December for the final task force report.
“We are setting the table for capital markets to grow… creating an environment for Ontario businesses to grow,” Phillips said. “The work that will be informed by the task force’s findings will foster innovation, drive competitiveness, ensure efficient regulation, and improve investor protection.”
Jensen, who resigned from the OSC this year several months before her term expired, sounded another note of “concern” during the conference. She said that while the government “has interest in certain types of policy items,” its participation “shouldn’t be so deep into the weeds that it prescribes the outcome.”
Wetston agreed that there are aspects of the OSC’s operations that are “sacrosanct” and should not be touched by the government. This includes adjudicative hearings where the OSC is enforcing the rules that govern the capital markets and ensure they are fair.
However, he said the finance minister has some powers in the statutes that govern the market watchdog that have been rarely used only because of relationships and trust developed between the government and the regulator.
“Independence is not absolute, and we must not think it’s absolute,” Wetston told conference participants. “Remember, in Ontario, the minister approves the rules.”
Financial Post
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