TORONTO (miningweekly.com) – The Prospectors and Developers Association of Canada (PDAC) has applauded the release of a revised consultation draft of the Capital Markets Act (CMA) and initial regulations for consultation, labelling it a key milestone in the transition to a cooperative capital markets regulatory system.

Members of the Cooperative Capital Markets Regulatory System, an initiative by the governments of British Columbia, New Brunswick, Ontario, Prince Edward Island, Saskatchewan, Yukon and Canada, released the draft document on Tuesday, with the comment period running until December 23.

"The PDAC is a strong supporter of efforts to reform Canada's capital markets that will address the current fragmentation of regulatory regimes across Canada. The establishment of the Cooperative Capital Markets Regulatory Authority provides an opportunity to implement important reforms that will facilitate cost-effective capital-raising,” PDAC president Rod Thomas said on Thursday.

The PDAC urged all jurisdictions to participate in the comment period and for the participating jurisdictions to design regulations that would facilitate capital-raising from a broader base of investors, reduce regulatory and compliance costs and support effective enforcement.

"Given the fundamental importance of effective capital markets to the success and sustainability of Canada's mineral exploration and development industry, the PDAC will continue to champion the adoption of a venture-friendly regulatory system. We look forward to commenting on these draft regulations and to working with the participating jurisdictions as the cooperative system is fully implemented,” Thomas stated.

The CMA and initial regulations were intended to modernise and harmonise the legislative frameworks of the participating provinces and territory. Once operational, the Capital Markets Regulatory Authority would administer the provincial/territorial legislation, the initial regulations and the federal Capital Markets Stability Act.