Amendments to the Securities Act introduced today, April 21, will help protect Nova Scotian investors.
The changes will allow certain enforcement orders from other provincial regulators, where there has been a finding or admission of a breach of securities laws, to apply right away in Nova Scotia.
“The capital markets operate nationally – and internationally – and government wants to protect and inform Nova Scotian investors,” said Finance and Treasury Board Minister Randy Delorey. “This legislation will give Nova Scotian investors immediate protection from people or companies that have violated securities laws in other provinces, and it will eliminate duplication of investigation and enforcement efforts.”
Each province is responsible for writing and enforcing their securities laws. When a securities violation is identified by a provincial regulator, it is investigated and an enforcement order may be issued.
The Nova Scotia Securities Commission has the authority to reciprocate orders issued by another securities regulator in Canada or by a court, however under existing law, the process can take many months, duplicate some investigation and enforcement efforts, and uses resources that could be better focused on other enforcement efforts. With these amendments, the orders issued by other provinces will automatically be in force in Nova Scotia and will enhance the ability to protect Nova Scotian investors.
Similar legislation is already in place in Alberta, and New Brunswick has introduced legislation to allow for automatic sharing.