Proportionate Securities Regulation: The Potential for Scaled Treatment of Junior Issuers

Particular features of Canada’s capital market inform our consideration of moving towards a more proportionate regulatory system. Specifically, Canada has a large number of small public companies; its market cap is concentrated largely in four provinces; it has a particular focus on mining, resources and technology; and a significant number of issuers are cross-listed on US exchanges. Canadian securities regulators have already recognized some measure of proportionate regulation in their national instruments, based on the type of listing. The paper suggests that a number of overriding principles or considerations should be taken into account in respect of a further move towards proportionate regulation.