National securities watchdog dealt court blow

December 22, 2011

The Supreme Court of Canada dealt a major blow to the federal government Thursday when it issued an opinion that Ottawa’s effort to create a single Canadian securities regulator is "not valid" under the Constitution.

The court was not convinced by the government's argument that creating the single regulator falls within its constitutional power to regulate trade and commerce.

Alberta, Quebec, and other provinces had argued that regulating securities falls within their power over property and civil rights.

Lower courts in both those provinces have already ruled that Ottawa is overstepping its bounds in trying to set up the national body. Read more