Nova Scotia’s Finance Minister, Michael Baker, has introduced amendments to its Securities Act, which are designed to help to protect investors and harmonize the province’s securities regulation with others across Canada.

Under the proposed amendments, investors will be able sue public companies when those companies fail to make timely disclosure or misrepresent public information in the secondary market.

The Nova Scotia Securities Commission would also get the power to order restitution, up to $100,000, of money lost through illegal or improper trading practices. “As a result, some investors will no longer have to undertake costly legal action to recover their losses,” it says.

“It is important to give Nova Scotians greater protection against the wrongdoing of others,” said Baker. “It is also important to have a way to seek compensation that does not add to the financial burden of those already affected by the misconduct of others. The changes we are introducing today in this legislation will do both.”

It is also introducing tougher penalties for those found guilty of illegal or improper conduct. Amendments are being made to provide for fines of up to $5 million and imprisonment of up to five years less a day. The current legislation provides for fines up to $1 million and imprisonment of not more than two years.

Other amendments will make it possible for Nova Scotia to meet its commitment to other provinces to move toward harmonized securities laws and regulation, and create a single window access to capital markets, as part of the passport system. Changes will allow for the harmonization and streamlining of, among other things, definitions and various reporting and registration requirements.

Other amendments to the act include measures that will: increase the NSSC’s board members from six to eight; allow the minister to request various reports from the commission; give the minister power to object to rules made by the NSSC; and, replace references to trial division of Supreme Court and appeal division of Supreme Court, to the Supreme Court of Nova Scotia and the Nova Scotia Court of Appeal.