The Canadian Department of Finance announced today that Prince Edward Island has become the fifth province to join the cooperative capital markets regulatory system now under development.

As we discussed last month, the federal government, Ontario, British Columbia, Saskatchewan and New Brunswick recently signed a Memorandum of Agreement setting out the terms and conditions of a cooperative regulatory system that the Finance Minister hopes to have operating by next year.

Under the proposed system, a common regulator referred to as the “Capital Markets Regulatory Authority” would administer uniform provincial legislation (that would be adopted in each participating provinces) as well as complimentary federal legislation focused on systemic risk. Drafts of both pieces of legislation were also published on September 8 with comments being accepted until November 7, 2014.