Inefficiency and Path Dependency in Canada's Securities Regulatory System: Towards a Reform Agenda

38 Pages Posted: 2 Nov 2004

See all articles by Anita Anand

Anita Anand

University of Toronto - Faculty of Law

Multiple version iconThere are 2 versions of this paper

Date Written: May 31, 2005

Abstract

We analyze the claim that Canadian capital markets are inefficient and examine reform proposals in light of this claim. We argue on the basis of empirical evidence that the Canadian securities regime is burdened by four types of cost inefficiencies: lack of harmonization, duplication, opportunity cost risk and uncertainty. We then argue that another type of efficiency - dynamic efficiency - is important in analyses of capital market regulation. We seek an explanation for inefficiencies in the current regime. We argue that the securities regulatory system has resulted from a path dependent legal trajectory that is heavily influenced by federal-provincial tensions over securities regulation as well as the institutions responsible for dispensing regulation.

Keywords: Efficiency, path dependency, passport, convergence, securities regime, Canada

Suggested Citation

Anand, Anita, Inefficiency and Path Dependency in Canada's Securities Regulatory System: Towards a Reform Agenda (May 31, 2005). Available at SSRN: https://ssrn.com/abstract=612681 or http://dx.doi.org/10.2139/ssrn.612681

Anita Anand (Contact Author)

University of Toronto - Faculty of Law ( email )

78 Queen's Park
Toronto, Ontario M5S 2C5
Canada
4169464002 (Phone)

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