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A New Mandate: Building the CA Competitiveness Agenda
On behalf of Ontario's 32,000-strong CA profession, the Institute congratulates Premier McGuinty and his team for securing a second majority government in the October 10 provincial election.
We particularly welcome the Premier’s commitments, submitted to the Institute during the course of the campaign, to work with Ontario's CA profession in his new mandate to advance the Institute’s Competitiveness Agenda. This plan is designed to protect our province’s competitive edge in a globalized economy, through measures including safeguards for professional standards in inter-provincial trade agreements and changes to Ontario's legal liability system. Highlights from the Premier’s letter:
On the need for legal liability reform
“We want to strike the right balance between consumer protection (maintaining accessible audit services to prevent future losses) and compensating investors for actual losses. A future Liberal government will review, in consultation with the Institute of Chartered Accountants of Ontario and others, existing legal liability provisions with a view to ensuring we have that balance.”
On creating a Centre of Excellence in Financial Services
“We agree with your view that a Centre for Excellence in Financial Services would be a useful way to keep the job-creating sector of our economy strong… and we look forward to working with you and others in moving this forward if we are re-elected.”
On safeguards for high professional standards in inter-provincial trade agreements
“We agree that future inter-provincial trade agreements should explicitly safeguard high professional standards for public accounting.”
With regard for the need for nationally consistent standards of qualification and conduct for public accountants, the Premier approaches the issue as follows:
“We are committed to a strong national accountability framework, and in particular to a national securities regulator. We look forward to working together toward these goals over the course of a second mandate.”
The Institute takes the view that the Premier’s proposed national accountability framework must include nationally consistent public accounting qualification and conduct standards, and will press this case in the months to come.
As a non-partisan public interest entity, the Institute is committed to working with all Parties in the Ontario Legislature to advance the CA Competitiveness Agenda. The outcome of the election in no way changes this ongoing responsibility. To that end, we sought the same commitments from Official Opposition Leader John Tory and were gratified to receive a comparable statement from the Ontario PC Campaign during the writ period. Key excerpts:
On the need for legal liability reform
“A John Tory government will consult with the Institute of Chartered Accountants of Ontario, and others, on the need to review existing legal liability provisions to ensure that they reflect emerging trends in leading financial sector jurisdictions.”
On safeguards for high professional standards in inter-provincial trade agreements
“Ontario must lead the national charge for the reduction of inter-provincial trade barriers across Canada. As part of this process we will work with the Institute of Chartered Accountants of Ontario and other stakeholders to safeguard high professional standards for public accounting.”
The Institute also sought comparable commitments from New Democratic Party Leader Howard Hampton, but did not receive a reply.
On behalf of this province’s 32,000 CAs, the Institute commends the Premier and Leader of the Official Opposition for recognizing the importance of these issues, and looks forward to a productive engagement in the policy and legislative development process that now resumes at Queen’s Park.
More information on the CA Competitiveness Agenda:
- Inter-provincial free trade: This is a hot topic among Premiers right now. They seek agreements to lower barriers to trade, investment and labour mobility by standardizing legislation and regulations across provinces. When it comes to labour mobility and professional standards, however, the risk is a “race to the bottom” where the lowest professional standards in any one province could become the minimum acceptable standards in all provinces, resulting in a hit to Ontario's competitive edge against our major trading partners. Ontario CAs say it’s time to ensure our professional standards continue to meet or exceed international expectations.
- Nationally consistent public accounting standards: Right now in Canada (and unlike our major trading partners, such as the United States), the rules for public accounting qualification and conduct are a “patchwork quilt” ranging from internationally recognized high standards in some provinces to fewer or no standards in others. Ontario CAs say it’s time for nationally consistent public accounting standards for this vital professional service, which assures investors and lenders that a company’s financial statements are accurately presented – because investor confidence is key to our competitiveness.
- Legal liability reform: Under Ontario's current, antiquated legal liability system, a party just one per cent responsible for a financial loss can be held responsible for fully 100 per cent of a claim. This threat is increasingly shutting off access to vital financial and accounting services for businesses of every size and, with it, access to the investment capital they need to grow and create jobs. Ontario CAs say our competitiveness depends on legal liability reforms like those underway among our major trading partners.
More information on the CA Competitiveness Agenda:
Briefing notes
Speaking notes
News media
- Financial Post op-ed by Institute President and CEO Brian Hunt, FCA, on the need for nationally consistent public accounting standards
- Financial Post letter by Institute Public Affairs Vice President Peter Varley on the need for safeguards for professional standards in inter-provincial trade agreements
- Bottom Line (leading finance and accounting publication) article on the case for legal liability reform
- Sault Ste. Marie Star story on the CA Competitiveness Agenda
- Institute news release: CAs put legal liability reform “on the radar” at financial services debate
In depth