The Government of British Columbia is strongly committed to continuously improve securities regulation in B.C. by enhancing protection for investors and reducing regulatory burden for market participants.
Two key initiatives—the Securities Amendment Act, 2006 and the Provincial/Territorial Memorandum of Understanding (MOU) Regarding Securities Regulation—further this goal, which ultimately strengthens British Columbia's business climate. |
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Securities Amendment Act, 2006
The new legislation strengthens investor protection by:
- raising maximum court fines and administrative penalties
- broadening insider trading and front running prohibitions
- expanding civil liability for anyone engaging in illegal trading
- authorizing a provincial court to order the restitution or disgorgement of illegal profits
- providing a process for victims to make claims against disgorged money
- enhancing the framework for interprovincial cooperation in respect of investigations and enforcement.
The new legislation also reduces regulatory burden for market participants by:
For more information on the legislation, see:
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Provincial/Territorial Memorandum of Understanding (MOU) Regarding Securities Regulation and the Passport System
Under the September 2004 Provincial/Territorial Memorandum of Understanding Regarding Securities Regulation ("MOU"), signed with historic cooperation by all provinces and territories except Ontario, ministers committed to adopt a passport system for an improved securities regulatory framework and to develop highly-harmonized securities laws, simplified where appropriate.
The passport system, when fully implemented, will allow a company to access capital markets in other participating provinces or territories through a "single window of access" once it obtains the regulatory approvals required in its home jurisdiction. In addition, when the system is fully implemented, registered dealers and advisers will find it easier to be able to offer their services to investors across Canada without re-registering in each province.
The harmonization initiative is intended to make securities laws in participating jurisdictions substantially similar in substance despite differences in form or structure. Harmonized laws are also intended to be streamlined when appropriate to improve the efficiency and effectiveness of the regulatory framework. The passport system's proposed "single window of access" will make it easier for companies to raise capital across Canada while harmonization and streamlined laws will improve Canada's capital markets in the global economy.
In September 2005, all provinces and territories except Ontario adopted the first phase of the passport system: the Principal Regulator System rule and related policy and procedural changes. Enhancements to the passport system are expected once further passport tools have been adopted in securities legislation across Canada. In British Columbia, the Securities Amendment Act, 2006 will provide the government with new powers and passport tools required to work with the other jurisdictions towards a second phase of the Principal Regulator system: a more comprehensive regulatory passport system - and further harmonization and streamlining of securities laws.
Currently, the passport system remains the best vehicle for streamlining securities regulation for British Columbia's market participants and improving protection for British Columbia's investors. The British Columbia government remains open to exploring all options for improving securities regulation in Canada that are consistent with the interests of British Columbia based issuers and investors. The steps taken under the MOU are steps that would need to be taken even if, in future, we decide to consider a single regulator for Canada. British Columbia remains committed to developing and sustaining a framework for securities regulation that inspires investor confidence and supports competitiveness, innovation and growth.
For more information on the Memorandum of Understanding, please see the Provincial - Territorial Securities Initiative website.
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