Change in New Brunswick Securities Legislation Improves Investor Protection: FCNB
SAINT JOHN– –Sanctions on trading, registration and other bans or restrictions imposed in other jurisdictions of Canada for violations of securities legislation take effect immediately in New Brunswick.
A result of Bill 28, An Act to Amend the Securities Act, which received Royal Assent in the provincial legislature last week, a new system is now in place to impose parallel bans in New Brunswick.
“When other securities regulators in Canada issue a decision or enter into an agreement with a person imposing sanctions, conditions, restrictions or requirements, these actions now automatically apply in New Brunswick as if the decision were made here,” said Kevin Hoyt, executive director of securities for FCNB, in a release. “Changing the mechanism in this way provides better investor protection, enhances regulatory efficiencies, and eliminates red tape.”
Reciprocating orders used to require a separate decision or agreement in New Brunswick. Now, even if the order or agreement is varied, amended or revoked by the originating securities regulatory authority in Canada, the same changes automatically take effect in New Brunswick.
The change is related to a Canadian Securities Administrators (CSA) project to harmonize regulation of the Canadian capital markets. Other provinces are developing similar changes. Alberta became the first province to automatically reciprocate capital markets sanctions in 2015. Quebec and Nova Scotia made similar amendments this year.