The Alberta Securities Commission reports that new securities transfer legislation has received Royal Assent.

The legislation proposes to modernize Canadian commercial laws governing the property rights that exist whenever securities are bought, sold, or used as collateral. The Securities Transfer Act (Bill 36), will bring Alberta’s securities transfer laws under a single act.

The ASC says that the expected benefits of this consolidation are: more modern commercial laws to support current securities holding and settlement practices, reduction of systemic and legal risk, and the removal of competitive disadvantages now faced by Canadian securities markets and intermediaries (especially in comparison with the U.S.).

The Securities Transfer Act is harmonized with the U.S. Uniform Commercial Code. “By harmonizing with the U.S. model, the Securities Transfer Act will be globally recognized as equally clear and reliable. In addition, it increases the likelihood that, as other nations reform their laws, all transfer legislation will be compatible with Canadian law,” it says.

Other provinces are working to bring their rules in line, the ASC notes. Ontario recently passed a similar Bill (Bill 41) and B.C. is working on its own Bill. Proclamation of these new Bills is expected to occur early in the new year.