Canada’s capital markets remain vulnerable to systemic fraud and enforcement gaps due to the country’s fragmented regulatory structure, according to a new analysis.
The report highlights that provincial jurisdictional disputes continue to hinder the federal government’s ability to establish a unified national securities regulator, leaving investors without consistent protection across borders.
The stakes for market participants are rising as sophisticated fraud schemes drain more than $700 million annually from Canadian consumers.
The stakes for market participants are rising as sophisticated fraud schemes drain more than $700 million annually from Canadian consumers.
Financial institutions are facing increasing pressure to absorb these losses, yet the lack of a cohesive federal enforcement framework complicates efforts to hold bad actors accountable.
This regulatory vacuum creates an uneven playing field where enforcement actions depend heavily on the province in which a transaction occurs.
The Globe and Mail report underscores the urgency for Ottawa to strengthen criminal enforcement mechanisms within the securities sector.