Quebec to fight federal securities regulator plan

The Quebec government is planning a legal challenge to any national securities regulator because it would violate the province's constitutional and jurisdictional rights, Finance Minister Raymond Bachand said Wednesday.

Securities regulation is a provincial power, but the federal government is pushing for a national body in place of the provincial and territorial securities commissions to fix what Finance Minister Jim Flaherty has called a "glaring weakness."

The national body, which is still being planned, would provide clearer national accountability, stronger enforcement, better service for investors and lower barriers within Canada, Flaherty has said.

Quebec does not believe that a national commission would be more efficient, and the provincial securities regulators have already harmonized their rules and regulations, Bachand said.

"So the inter-provincial system is working well. It's closer to the client. It's closer to the investors and, I think, more efficient that way," he said.

Flaherty announced an office to help develop the national regulator on June 22.

The office will develop the federal Securities Act, collaborate with provinces and territories  and develop a transition plan to cover organizational and administrative matters, the government said.

The office "intends to work collaboratively with provinces and territories that are willing to participate," the government said.

Alberta has also objected to the proposed national commission.

Quebec is willing to fight the federal initiative to Supreme Court of Canada, Bachand said.