Steve Sibold holds the top job at the Alberta Securities Commission – and is having the time of his life. The former Bennett Jones lawyer and general counsel for Canadian Airlines reflects on how his experiences have helped shape his attitudes towards the dynamic securities business.

1. What piqued your interest in law?

“A cousin of my mother’s (the late Paul Shannon) was a very successful lawyer in Toronto. His success and the type of person he was definitely was a factor that influenced me to become a lawyer. He did well at it, thrived at it and and seemed to have a very satisfying life.”

2. How do you reflect on your four years in senior management with Canadian Airlines before it merged with Air Canada?

Mike Sturk, Business Edge
Automobile enthusiast Steve Sibold's most treasured possession is his 2001 Audi TT, a model of which he keeps in his downtown Calgary office.

“It was very stressful, but also very exhilarating. It was enjoyable because of the wonderful people I was able to work with there. Some of them are my best friends today.”

3. What business lessons did you come away from Canadian Airlines with?

“I learned lessons about business planning, budgeting, cost control, the importance of surrounding yourself with the most competent employees you can, how to deal with a board of directors, government relations, employee relations, human resources, labour relations strategy, financing strategy. During the time I was there, we did everything from an operational restructuring to an attempted takeover of Air Canada to substantial negotiations in all our collective agreements with our unions to very sophisticated negotiations with the government. We used to joke that, because we had so much on the go, one year at Canadian was equivalent to 10 years somewhere else.”

4. After leaving Canadian Airlines, why did you choose to take the top job with the Alberta Securities Commission in May of 2000?

“What appealed to me about the commission was that it gave me an opportunity to build upon my experience at Canadian Airlines, it gave me an opportunity to be in charge of an organization, which is what I’d always wanted to do, it got me back into securities, which I was familiar with from my law practice, and it also gave me exposure to policy making in the regulatory world. It also gave me the opportunity to participate in some hearings and give me a sense of what it’s like to be in a judicial or quasi-judicial role. I’m having a great time. I find it very challenging and rewarding.”

5. What have your top priorities been since joining the ASC?

“My first priority was to organize the commission and the management structure. I made some personnel changes, putting together a team that I wanted to work with. We also put together a strategic plan in the first year. Since then, we’ve been working on trying to implement the plans and processes and focusing more on what I call external relations. We’ve been playing a meaningful role with (both) our industry and the Canadian Securities Administrators (CSA). This year, our major policy initiative is a project we’re heading up on behalf of the CSA, which is the uniform securities law project.”

6. Is the move toward uniform securities law overdue in Canada?

“Absolutely. I think without question it’s the most important project we have on at CSA right now. If we can accomplish it, it’ll be the single biggest improvement in securities regulation, certainly since I started practising securities law in 1979. By the end of next year, we hope to have developed a uniform securities act and rules which could be adopted by all the provinces and territories of Canada in the spring of 2004. It won’t come without difficulty, but I truly believe we can accomplish it.”

7. What’s your opinion of the push for a national securities commission?

“Having 13 provincial and territory securities commissions is undeniably a problem. I’ve always said that I’d be in favour of a national securities commission provided that, firstly, the regional capital markets can be adequately represented and protected, and, secondly, the philosophy of regulation of the national commission is one which takes account of the size of our capital markets. I don’t want a clone of the U.S. Securities Exchange Commission (SEC) in Canada, because it’s overkill. The U.S. capital markets represent 56 per cent of the world’s total capitalization, and the Canadian capital markets represent two per cent.”

8. So, do you believe a national securities commission will come to fruition?

“To my mind, we should be dealing with our other three problems first. If we can get uniform securities legislation in place, that’ll be a huge benefit. If we can get the governments to stop indirectly overtaxing the securities industry, that’ll save us a lot of money. If we can get a regulatory regime that is more streamlined, that’ll save us a lot of money. Then, we’d have to ask if it’s worth the effort of trying to forge a national securities commission. Securities regulation today, constitutionally, is a provincial rather than a federal matter. So, I think you’d need the federal government to form it, and that means negotiations between the federal government and the province to amend the constitution. That would take years to accomplish.”

9. So you’re not necessarily opposed to a national securities commission?

“If I could wave a magic wand, I’d probably create a national commission that had strong regional capital-market protection and would have the philosophy that I think is appropriate. But there’s no magic wand to wave.”

10. Have you been able to convince Toronto Stock Exchange (TSE) CEO Barbara Stymiest, an outspoken proponent of a national commission, of your views?

“She has indicated recognition of the view that the Canadian capital markets are, in essence, junior markets and that we have to look at the level of regulation. She seems to think that a lot of her problems are caused by the fact that there are 13 securities regulators. The reality is that there is only one securities commission in Canada that has jurisdiction over the TSE at this point, and that’s the Ontario Securities Commission (OSC). The TSE can do whatever it wants, provided the OSC concurs. She doesn’t have to deal with Nunavut or New Brunswick. So I’m not sure how a national commission will advance the business aims of the TSE.”

11. Are you pleased with the TSE’s integration of the CDNX?

“I think, frankly, that until they get a new person in charge (hiring a permanent CDNX president), they’re still going to be spinning some wheels. They need a new leader in there to take charge and determine where they’re going.”

12. How should they revive interest in the CDNX?

“I think one of the things they have to do is look at the level of regulation. I think they have to be careful to ensure that they don’t over-regulate the junior capital market. I don’t think the junior capital market can be regulated to the same level as the senior market. I think they need a more streamlined regulatory framework. I think now there is an excess burden being imposed on the junior capital companies in Canada. And that’s a combination of the rules the securities commissions have passed and the stock exchange.”

13. What other CDNX issues concern you?

“I think the important thing is for them to get back to business. By that, I mean that their trading volumes are way down, the number of IPOs (initial public offerings) is way down and the capital pool program seems to be running out of gas right now. So, I think we’d like to see a more vigorous market there. But I think the primary driving force there is just the general state of the capital markets. Until the equity markets come back on a North American basis, you’re not going to see huge improvements.”

14. Do you think the Enron scandal in the U.S. will cause irreparable damage to investor confidence?

“No, I don’t think so. Obviously, when a company of the size of Enron files for bankruptcy and some of the circumstances surrounding the bankruptcy seem to suggest there was improper disclosure and some improper accounting practices, it obviously is of enormous concern to regulators and the investing public. But I think we have to wait to see what went wrong. So far, no one knows. We have to let the proper investigative procedures to be held and find out what the root cause was. Then, we can look at what needs to be done – if anything.”

15. Do you not believe that stricter regulations might have prevented the Enron disaster?

“I wouldn’t at all, at this point, assume that we need more rules. When something goes wrong, sometimes it’s because there weren’t appropriate rules in place. Sometimes, it’s because there were appropriate rules, but people just didn’t follow them. So, what we have to ask is if this is a gap-in-rules problem or an enforcement problem.”

16. Are you satisfied with the integrity and fairness of the capital markets?

“Yes, I am. I think investors should have confidence in the capital markets. We do our best to monitor things, we try to bring into force appropriate rules and enforce those rules. That doesn’t mean to say that problems can’t arise, and let’s face it, they will continue to arise. But I think, frankly, that we do a very good job here of monitoring the capital markets.”

17. Is this a nine-to-five job?

“I don’t think any job you work hard at is nine to five. But it certainly is less hectic than my time at Canadian Airlines and my practice of law. It’s also a job that – because of the responsibility I have of running the organization – I take home with me every day, and I think about it constantly. In one sense, it’s a 24-hour job. But compared to working at Canadian Airlines, nothing is stressful. That was a pressure cooker. There’s an old saying: ‘If a job’s worth doing, you should do it right.’ ”

18. What’s your most treasured personal possession?

“My car (a green 2001 Audi TT, a model of which is on display in his office). I’m a car buff. What appealed to me about the TT is all-wheel drive. It’s the only practical all-wheel drive sports car you can get, and it’s moderately priced compared to a Porsche.”

19. Who is the business leader you most respect and admire?

“I have enormous respect for my former boss Kevin Benson (former CEO of Canadian Airlines and current CEO of ICBC Insurance), for the way he motivates people, his clear thinking, his analytical ability and the fairness with which he treats people. I think he’s the most impressive business leader I’ve ever been exposed to.”

20. Ideally, how long would you want to stay in this job?

“Before I leave, I’d like to have the feeling that I’ve made a very positive impact on the Alberta Securities Commission and the Alberta capital markets. I believe that if we can have the National Instrument for oil and gas reserves disclosure implemented (this disclosure standard has been developed by the ASC) and the uniform securities act implemented, I’ll feel like I’ve accomplished quite a lot. My initial appointment was for five years, and with three years left, we’ll see what happens. We have a very good team of dedicated people who also manage to have a good time along the way. It’s very enjoyable.”

IN PROFILE: Steve Sibold

* Born/raised/age: Toronto, Stratford, Ont.; 49.

* Title: Chairman/CEO, Alberta Securities Commission (since May 2000).

* Education: Bachelor of Arts (economics and political studies), Bachelor of Law, Queen's University (Kingston, Ont.); admitted to Law Society of Alberta in 1977, and appointed Queen's Counsel in January 2000.

* Family: Daughters Shannon, 18; Georgia, 9; son William, 13.

* Career: Prior to joining the ASC, Sibold was senior vice-president and general counsel of Canadian Airlines (since merged with Air Canada). Before joining Canadian Airlines in 1996, he was a partner at Bennett Jones law firm in Calgary, practising corporate/commercial and securities law.

* Favourites: Pastime – golf; Celebrity – Michelle Pfeiffer; Movie – James Bond films; Book – American Caesar (biography of Douglas McArthur);

* City outside Calgary – Vancouver.

THE COMPANY: Alberta Securities Commission

* Brass: Steve Sibold, chairman/CEO; David Linder, executive director; Eric Spink, chief financial officer.

* Profile: The ASC is the regulatory agency responsible for overseeing the capital market in Alberta. It is an industry-funded provincial corporation that administrates the securities act, securities regulations and ASC rules.

* Mission: To foster a fair and efficient capital market and confidence in that market.

* Website: www.albertasecurities.com

* Address: 4th Floor 300 5th Ave. S.W., Calgary, AB, T2P 3C4.

* Phone/Fax: 403-297-6454, 403-297-6156 (Calgary); 780-427-5201, 780-422-0777 (Edmonton).