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IIAC president Ian Russell is seen in this file photo.Fred Lum/The Globe and Mail

The head of the trade association representing Canadian securities firms is expecting small victories from Thursday's federal budget, rather than a big win the industry had been seeking.

The investment industry had been lobbying for an incentive to help small- and medium-sized companies raise money in capital markets – which would generate business for securities dealers. Representatives of the Investment Industry Association of Canada travelled to Ottawa last month and put forward ideas such as the ability for investors to do a tax-free rollover when they sell holdings in small- and medium-sized companies, so long as the proceeds were reinvested. Another option would be a break on capital gains, said IIAC head Ian Russell.

"I'm not optimistic" that anything will be forthcoming in response, said Mr. Russell, pointing to the fiscal situation and the government's need to keep deficits under control.

Instead, he said he expects "further incremental moves to improve the structure and competitiveness of the Canadian economy." There may be some moves to extend and expand tax-free savings accounts.

He's also expecting the government to continue funding a push for a national securities regulator, which he said his members support. That initiative has so far stalled, but Mr. Russell said he expects the government in Ottawa to support further attempts "as long as there is a flicker of hope."

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