Ms. Brenda Leong reports
BCSC GAINS NEW POWERS THROUGH LEGISLATIVE AMENDMENTS
The B.C. Securities Commission (BCSC) has gained greater powers to
advance investigations of investment market misconduct and hold people accountable
for their illegal acts, under a package of legislative amendments that came into
force July 17.
The updates to B.C.'s Securities Act include a provision enabling the BCSC to
impose consequences for failing to comply with a summons or demand to provide
information. Until now, the BCSC had to apply to the Supreme Court for an order
that a non-co-operative person be liable for contempt, a time-consuming process.
Now, the BCSC can use its administrative processes to impose swifter consequences
restrictions on market participation and administrative penalties up to $1-million for failing to comply.
In addition to the act amendments, the Pension Benefits Standards Act and the
Pooled Registered Pension Plans Act have been amended to make clear that certain
pension derived funds are not exempt from enforcement processes arising from
orders made under the act. These amendments enhance the BCSC's ability to collect
BCSC-imposed penalties.
"The BCSC's enforcement and collection capabilities were already among the
strongest of any securities regulator in Canada," said Brenda Leong, the BCSC's
chair and chief executive officer. "These amendments strengthen BCSC's ability to investigate
misconduct and support stronger protections for investors."
Other updates to the act include:
-
An amendment giving the BCSC rule-making authority to regulate auditors of
registrants. Such regulations could include standards on the audits conducted of
registrants, which would be consistent with the approach to auditors of United States
registrants.
-
An amendment giving the BCSC rule-making authority to impose continuous
disclosure obligations on issuers that are not reporting issuers, such as pooled
funds. Most other Canadian jurisdictions impose limited continuous disclosure
obligations primarily financial disclosure on certain types of investment
funds.
-
An amendment allowing the BCSC to seek court orders including payment of
restitution or damages if a person has been convicted of a Criminal Code offence
related to securities or derivatives.
About the B.C. Securities Commission
The B.C. Securities Commission is the independent provincial government agency
responsible for regulating capital markets in British Columbia through the
administration of the Securities Act. The BCSC's mission is to protect and promote the
public interest by fostering:
-
A securities market that is fair and warrants public confidence;
-
A dynamic and competitive securities industry that provides investment
opportunities and access to capital.
© 2024 Canjex Publishing Ltd. All rights reserved.