Common use of NON-CRIMINAL PROVISIONS OF FEDERAL LEGISLATION Clause in Contracts

NON-CRIMINAL PROVISIONS OF FEDERAL LEGISLATION. The provisions of the federal legislation forming part of the Cooperative System that address systemic risk in national capital markets would be “platform” in nature. Rather than containing detailed provisions, the federal legislation would provide for the delegation by the Government of Canada to the CMR of federal authority to: • make regulations of national application (including in non-Participating Jurisdictions) related to systemic risk in national capital markets and national data collection, • make orders regarding practices determined by the CMR to give rise to systemic risk in national capital markets, and • exercise national emergency powers related to systemic risk in national capital markets and national data collection The CMR’s regulation-making authority regarding systemic risk would for example include the authority to gather information to identify and monitor warning signs of emerging systemic risks to the financial system originating in the national capital markets. The federal legislation would delegate to the CMR national emergency powers in the event of a financial crisis to address an imminent threat to the stability of the national capital markets. The Minister of Finance of Canada would be authorised in such extraordinary circumstances to direct the CMR to exercise its national emergency powers (for limited duration) following consultation with the responsible Minister from each major capital markets jurisdiction.

NON-CRIMINAL PROVISIONS OF FEDERAL LEGISLATION. The provisions of the federal legislation forming part of the Cooperative System that address systemic risk in national capital markets would be “platform” in nature. Rather than containing detailed provisions, the federal legislation would provide for the delegation by the Government of Canada to the CMR of federal authority to: •  make regulations of national application (including in non-Participating Jurisdictions) related to systemic risk in national capital markets and national data collection, •  make orders regarding practices determined by the CMR to give rise to systemic risk in national capital markets, and •  exercise national emergency powers related to systemic risk in national capital markets and national data collection The CMR’s regulation-making authority regarding systemic risk would for example include the authority to gather information to identify and monitor warning signs of emerging systemic risks to the financial system originating in the national capital markets. The federal legislation would delegate to the CMR national emergency powers in the event of a financial crisis to address an imminent threat to the stability of the national capital markets. The Minister of Finance of Canada would be authorised in such extraordinary circumstances to direct the CMR to exercise its national emergency powers (for limited duration) following consultation with the responsible Minister from each major capital markets jurisdiction.