Rik Parkhill, Co-CEO, TSX Group Inc.
Prospectors & Developers Association of Canada
March 3, 2008
TSX Knee capped by Flaherty:
Reprinted from Tuesday, March 4, 2008
"Last year, we were seventh in the world in raising public equity
capital – nearly $56 billion. Some $19 billion of that was for mining
projects -- $11.8 billion raised on Toronto Stock Exchange, $7.2
billion on Venture.
I might note that seventh was a bit down from previous years. We
have, in the past, been fifth or better. But we took a hit a couple of Hallowe’ens ago when the federal government knee-capped the income trust industry."
The importance of Integrity in Capital Markets
"What brings investors to these products and our markets is a global reputation for integrity as well as liquidity. That is a credit to your industry, to regulators and to our own role as an exchange operator.
But global reputations are not won by a global presence. Reputations are won by integrity and world-class performance. They are hard earned and easily lost. We all have an interest in ensuring that this essential basis for our future global performance is protected and
Arbitrary and unproven policies of the Harper Government
"But the broader policy environment needs work, too. As a destination for foreign capital, we are not as attractive as we could be and should be to global markets. Some of this involves shooting ourselves in the foot.
Whatever the pluses and minuses of the income trust decision, for example, it hurt our reputation abroad.
It is not clear that the decision served the government’s revenue objectives either, because it made income trusts very attractive takeover targets for foreign funds who could load them with tax- deductible debt.
Equally, the fuzziness that surrounded the question of interest- deduction taxation as it related to takeovers by Canadian companies of foreign firms certainly spooked some key players in our market at a critical time.
The bigger problem, however, is a policy approach that views the Canadian market and especially Canadian capital markets as an island unto itself. "
Wednesday, February 9, 2011
Posted by Brent Fullard at 9:40 AM