The first bill to implement the proposals contained within the 2014 Federal Budget for over-the-counter derivatives regulations and financial benchmarks has been introduced in Parliament. Bill C-31, titled the Economic Action Plan 2014 Act, No. 1 (“Bill C-31”), amends the Bank Act to add regulation-making powers respecting a bank’s activities in relation to derivatives and benchmarks. The Government of Canada’s intention is that Bill C-31 will:
- facilitate the integration and consolidation of over-the-counter derivatives regulations with the Cooperative Capital Markets Regulator (when it becomes operational);
- make it easier for foreign regulators to assess the Canadian regulatory framework in their equivalency determinations;
- strengthen Canada’s regulatory framework for benchmarks; and
- respond to new international standards that strengthen the integrity, reliability and oversight of financial benchmarks.
Full details of the amendment can be found at Part 6, Division 13, sections 210 of Bill C-31.