John McKenzie, the CEO of TMX Group, talks about how the IPO and merger markets are doing, especially as Canada deals with trade tensions and works to stay competitive.
If a few key changes are made, Canada’s financial markets could become more attractive to growing businesses. That’s the message from John McKenzie, CEO of TMX Group, which runs the Toronto Stock Exchange. In a recent interview, McKenzie laid out steps he believes the next federal government should take to help Canadian companies raise money more easily and compete globally.
He stressed that Canada's market already lists more companies than many other countries. But McKenzie warned that unless the environment improves for companies seeking investment, the country risks falling behind, especially with the U.S. working hard to make its own market more appealing to businesses.
“We need to stay ahead,” he said, “not just match what the U.S. is doing, but actually outperform them.”
Cut Investment Costs from Day One
McKenzie’s first suggestion is to allow businesses to deduct capital investments immediately. He believes that would attract more companies to build facilities, launch tech centers, start mining operations, and develop infrastructure in Canada.
“It’s about lowering the cost of getting started,” he explained. “Let companies invest and immediately deduct those costs—this gets money off the books and into real projects.”
Encourage Risk-Taking with Lower Capital Gains Tax
McKenzie also wants Canada to lower capital gains taxes for people investing in Canadian companies. Many of these are small or medium-sized firms that need more backing to grow.
“Investing in local businesses involves risk,” he noted. “We should reward that kind of risk-taking when it supports our economy.”
He even proposed a way to keep the policy cost-neutral: increase capital gains taxes on investments in foreign firms, just like how Canada treats dividends and other financial tools.
Make Mining Tax Credits Permanent
Canada is a global leader in mining, both in company listings and financing. But McKenzie pointed out that it takes far too long—over a decade in many cases—for mines to go from idea to operation.
Programs like the Mineral Exploration Tax Credit (METC) help, but they’re temporary. “A two-year tax credit won’t do much if it takes 13 to 15 years to launch a mine,” he said. He urged the government to make the METC permanent to build long-term confidence for investors.
More Growth Ideas on the Table
Beyond these three major points, McKenzie suggested other ways to help Canadian industries thrive. These include:
- Expanding the flow-through shares program to more high-growth sectors.
- Making it easier to launch large-scale projects.
- Offering fair access to innovation funding across sectors.
McKenzie believes that by lowering barriers and offering clearer, long-term support, Canada can keep its edge—and even push ahead—in the global investment race.
