Quebec’s finance minister announced that the province’s National Assembly has passed a bill that will bolster investor protection.

Bill 64 provides the Autorité des marchés financiers (AMF) with a variety of tools that enable it to act more quickly and effectively when it detects breaches of the regulations applicable to financial institutions and other intermediaries. The measures in the bill include an increase in minimum fines, harmonization of administrative sanctions in various statutes, longer liability periods to facilitate the Autorite’s work, and the possibility of imposing a prison sentence in the securities sector, whether or not a fine has been imposed.

In addition, the new legislation grants a power of order to the Bureau de decision et de revision en valeurs mobilieres to correct a situation, cancel a transaction, or force persons in default to comply with the law or deprive them of the gains made as a result of their breach.

Moreover, the AMF is granted new investigation powers, in particular the power to obtain information from the external auditor, despite professional privilege. Finally, a fund is being set up to enable the education of consumers of financial products and services, protect the public, and promote sound governance.

“I am happy that this bill has been passed. It is designed specifically to bolster investor protection in Quebec and thus boost confidence in the financial sector,” said Quebec’s minister of finance, Monique Jerome-Forget.

She pointed out that the bill responds to all the legislative proposals made by the Commission des finances publiques in its report arising from the mandate dealing with investor protection. “This legislation gives substance to our government’s commitment to bolster investor protection. I am convinced that the new sanctions and new tools granted to the Autorite will have a deterrent effect on those who may be tempted to commit fraud,” Jerome-Forget concluded.