The Canadian Forum for Financial Markets (CFFiM) is calling on the federal government to recognize capital sovereignty as a core component of Canada’s economic policy and systematically reform tax, regulatory and financial-market policies that unnecessarily impede the formation, retention and productive deployment of capital in Canada.
Trade tensions and geopolitical realignment have exposed a broader economic vulnerability. Governments increasingly use tariffs, investment restrictions, technology controls, sanctions and access to domestic markets as instruments of geopolitical policy. In this environment, access to capital itself can become a source of strategic leverage.
Canada benefits substantially from foreign capital and should remain an open and attractive destination for international investment. But a country seeking greater control over its supply chains, energy, technology and strategic industries must also have the capacity to finance their development, ownership and growth.
“Canada is spending heavily to secure its energy, defence capabilities, infrastructure and strategic industries. But Canada cannot strengthen its economic sovereignty without strengthening its capacity to finance those ambitions,” said Laura Paglia, President and CEO of CFFiM. “Foreign investment remains essential. Canada also needs competitive domestic financial markets capable of financing Canadian investment, innovation, ownership and growth.”
CFFiM recommends that:
Tax, regulatory and financial-sector policy be assessed against a common objective: whether it strengthens Canada’s capacity to finance Canadian investment, innovation, ownership and growth.
Tax policy should help each dollar of public investment attract private capital, expand productive capacity, and strengthen long-term economic growth.
The federal government to work with the provinces to develop a coordinated national capital-markets competitiveness agenda focused on strengthening capital raising and eliminating unnecessary regulatory duplication.
CFFiM’s Budget 2026 recommendations set out specific tax and financial-market measures to advance these goals.
