Canadian Principles-based Securities Regulation And It's Revelation To Our Country

Canada has implemented the Principle-based Securities Regulation,while maintaining the stability of its securities economy,gives regulators flexibility to adjust.In the global financial and economic crisis triggered by Wall Street in 2008,why was Canada less affected by the impact? It's related to the implementation of principled securities supervision and corresponding mature risk management experience.Canada has applied this regulatory model to the latest blockchain supervision and implemented "sandbox supervision" for blockchain companies,exempting them from compliance with some of the compliance rules,which has aroused worldwide concern.However,there is no specific and systematic research on Canadian securities regulation in China.Only research on certain parts of Canadian securities,or make a selective introduction to Canadian securities regulation when studying other international securities regulations.For this reason,under the opportunity of China's great development in the new era of capital markets,a systematic study of Canadian principled securities supervision will help provide experience for our country to actively promote the reform of securities supervision.The first chapter introduces the historical background,formation process and development status of the Canadian Principle-based Securities Regulation,and defines the concept of the model.The constitution divides securities regulatory legislation and law enforcement powers into provinces/regions,resulting in decentralized supervision of securities.This has prompted Canada to accelerate regulatory reform.The passport system cannot solve the joint law enforcement needs of the provinces/regions and cannot unify the legislative system.Rule-based Regulation is not conducive to the development of innovative markets.Under the dual role of history and reality,Canada has chosen the Principle-based Securities Regulation.Under the dual role of history and reality,Canada has chosen the principle of securities supervision mode."Based on principle",under the unified guidance of principles,it recognizes the differences between the provinces/regions and unified the spiritual connotation of national securities regulation;"Results-oriented",it is strictly regulated by regulators,controlling systemic risk.The second chapter analyzes and evaluates the characteristics and value of Canadian Principle-based Securities Regulation,and analyzes the advantages and disadvantages of it.Firstly,compare it to strict regulation of securities.The broad and vague linguistic features based on "principle-based" can more fully cover regulatory needs and make supervision more flexible,which helps to ease the contradiction between lagging legislation and marketinnovation."Results-oriented" will result in stricter and more prudent duty of care than regular supervision.The regulators will not be allowed to evade accountability on the pretext that they have met the rules,which is conducive to risk prevention.Secondly,analyze the disadvantages of Canadian Principle-based Securities Regulation."Principle-based",lacking of specific ex ante rules may lead insufficient risk defense in advance.And for small companies,who cannot afford unknown compliance risk and lack of specific known rules,may be at a disadvantage in the competition.The Principle-based Securities Regulation has increased the burden on small companies.The "result-oriented" accountability mechanism may have greater challenges in balancing fairness and efficiency.Finally,it introduces the practice of the Principle-based Securities Regulation in other countries and analyzes the value of Canadian Principle-based Securities Regulation in the perspective of comparative law.The third chapter reviews the recent securities regulatory changes in China,and made compare it with Canada.It points out that the reform and practice of China's securities regulatory legislation has also increasingly attached importance to the application of positive elements of principled supervision,and can refer to the useful experience of Canada.It also put forward proposals for China's securities regulatory reform.First of all,economic globalization has promoted global cooperation in securities supervision,and the Internet economy has challenged the original regulatory system.It is necessary for China to seek a more flexible and stable model of securities supervision.Secondly,China's recent securities regulation laws and regulations are aimed at relaxing the rules and promoting market innovation.Learning from the excellent experience in the principled securities supervision of Canada is conducive to providing reference for China's recent securities reform.Finally,to draw on each other's strengths and weaknesses,while drawing lessons from Canada's outstanding experience,China should further strengthen its prior risk prevention and reduce the burden on small and medium-sized companies.