The government of Quebec has unveiled new legislation designed to tighten regulation of the financial sector in that province.

On Thursday, finance minister Raymond Bachand introdued Bill 74, which proposes to:

• increase oversight of credit rating agencies;

• grant the Autorité des marchés financiers the same powers of intervention as the Canada Deposit Insurance Corp. over deposit-taking institutions that encounter solvency problems;

• clarify the oversight of foreign insurers operating in Québec;

• raise maximum administrative penalties levied by the Bureau de décision et révision, from $100,000 to $2 million, and by the discipline committees, from $12,500 to $50,000;

• supervise the sale of automobile replacement guarantees and revise the rules governing the distribution of insurance products without a representative; and

• modify the Code of Penal Procedure in order to codify the principle of consecutive sentences.

“The financial sector is changing constantly, which is compelling governments the world over to be constantly on the lookout and intervene promptly in order to contend with new situations. If the bill is passed, we will become the first province in Canada to act upon the deliberations of the G20 concerning the regulation of credit rating agencies,” Bachand said.

Regarding the revision to sentencing rules, he added, “In light of recent financial scandals and questioning by the courts concerning sentences, it was advisable to clarify our Code of Penal Procedure.”

IE