Michael Sabia, president and chief executive officer of Caisse de dépôt et placement du Québec during a news conference following the release of 2009 financial results in February.CHRISTINNE MUSCHI
The head of the Caisse de dépôt et placement du Québec has thrown his full support behind the Quebec government's opposition to the creation of a national securities regulator.
"Our view, based on my experience both at Canadian National and at BCE, is that the existing system, the passport system, works well, it functions well," Michael Sabia told reporters after a speech to the Canadian Club on Wednesday.
"We think it works," added Sabia, the former chief executive officer of telecom giant BCE Inc. and chief financial officer at Canadian National Railway Co. when the Montreal-based railway was privatized in the mid-1990s.
"And, therefore, we're very comfortable with the position of the government of Quebec with respect to this issue."
Quebec and Alberta are vehemently opposed to federal Finance Minister Jim Flaherty's plan to set up the national regulator, and both have launched constitutional challenges against its creation.
Mr. Flaherty, meanwhile, is sending his draft bill to the Supreme Court of Canada for a ruling on whether securities regulation falls under the jurisdiction of Ottawa or the provinces.
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The Supreme Court decision is expected to take between 10 months and a year
Quebec Finance Minister Raymond Bachand has suggested that centralizing decisions would immediately shift 500 to 1,000 high-level jobs from Quebec to Toronto. It would be followed by a gradual move of supporting lawyers, accountants and tax specialists.
A study prepared by consulting firm Secor said there are 300,000 direct and indirect financial sector jobs in Quebec, about half in Montreal.
Alberta Finance Minister Ted Morton has called the federal move an "unprecedented power grab" and totally without justification.
Currently, all 13 provinces and territories have their own securities regulators who police financial markets for signs of fraud and other financial misdoings. Alberta, for example, is able to regulate oil and gas companies in the way it sees fit.
The new body would operate under one set of rules and policies, not 13. In theory at least, it would be more efficient and effective in regulating financial markets and investment, and more vigorous in investigating and prosecuting abuses and fraud.