Contact: Ken McGuffin, Rotman School of Management Media Relations, 416-946-3818, mcguffin@rotman.utoronto.ca
TORONTO, June 27 /Standard Newswire/ -- A conference, to take place at the Rotman School of Management at the University of Toronto, takes a timely look at the perceived lack of enforcement of securities law in Canada and the resulting impact on our capital markets system. "Advancing the Enforcement Agenda, Part I: What is the Problem?" will take place on Wednesday, June 27 and will be hosted by the
There is a widespread perception that securities enforcement processes in
"Loosely enforced securities laws appear to have created what is called a Canadian discount where the cost of capital is higher in our country due to the perception that white collar crime goes unchecked - increased enforcement leads to lower cost of capital", says Rotman Professor Paul Halpern, Director of the Capital Markets Institute. "The net effect to investors is higher returns to compensate for greater risk, however, Canadian capital markets may suffer overall as investors decide to leave this market and move to other equity capital markets or invest in relatively safe securities such as government bonds. This behavior is the result of an open economy in which domestic capital is not obliged to 'stay at home' and in which international perceptions of the Canadian capital markets are crucial."
In 2006, the Task Force to Modernize Securities Legislation in
The Honourable Jim Flaherty, Minister of Finance, Government of Canada, will provide a federal perspective on the issue. While most of the conference will be private, media are invited to attend Minister Flaherty's remarks at approximately 4:00 pm in the Fleck Atrium of the Rotman School of Management,
"I think we would all agree that modernizing our capital markets and improving enforcement are critical if we are going to make our strong Canadian economy even stronger," said Minister Flaherty. "Our government is making progress by implementing our Capital Markets Plan. As we move forward I will continue to count on the support and expertise of the Capital Markets Institute, the Rotman School of Management and the C.D. Howe Institute."
A fall conference, entitled, "Advancing the Enforcement Agenda, Part II: What is the Solution?," is currently in its planning stages and will offer researched based recommendations for the creation of a common securities enforcement agency and a view on creating an effective approach to enforcement issues of an international nature.
CAPITAL MARKETS INSTITUTE
Formed in 2000 at the University of Toronto's Rotman School of Management, the Capital Markets Institute (CMI) is a research based facility offering independent analysis on major policy-related issues affecting Canadian capital markets and impacting the country's global capital markets competitiveness. Through its research and conferences, CMI's objective is to provide a clear understanding of the challenges facing Canadian capital markets and offer innovative thinking relating to the institutional tools
C.D. HOWE INSTITUTE
The C.D. Howe Institute is a national, nonpartisan, nonprofit organization that aims to improve Canadians' standard of living by fostering sound economic and social policy. The Institute promotes the application of independent research and analysis to major economic and social issues affecting the quality of life of Canadians in all regions of the country. It takes a global perspective by considering the impact of international factors on
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