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November 2023 Advocacy Newsletter
Summary:
Canada-wide securities rules take almost three years to develop on average. More significant reforms, like the client-focused reforms, typically take much longer. It makes sense to look for ways we can speed up the rulemaking process without impairing the quality of the rules we adopt.
To that end, the Ontario government has proposed cutting the minimum period that rule proposals need to be open for stakeholder comment from 90 days to 60 days. Since no other Canadian securities regulator is required to leave rule proposals open for comment longer than 60 days, this reform would reduce the time available for stakeholders to comment on any Canada-wide securities rule proposal.
I’m all for harmonization, but a 30-day cut seems unlikely to make much of a dent in the overall length of the rulemaking process. And Ontario hasn’t pointed to any evidence cutting against this notion.
Reduced consultation does, however, seem likely to strengthen the hand of industry interests in the rulemaking process. Industry groups have the resources and the incentive to produce sophisticated comment letters on a tighter timeline. Groups like the CAC, which rely heavily on volunteer time and expertise to advocate for more public interest-oriented goals, inevitably will be at a disadvantage.
Consultation fosters informed rulemaking that responds to a wide range of interests. Rather than give regulators more scope to cut corners by reducing opportunities for consultation, we should identify and address more material hurdles to timely rulemakin