The Ontario Securities Commission reports that legislation has been passed that will enable the implementation of registration reform, and gives it a new authority to take immediate action in certain situations, among other things.

Friday’s OSC Bulletin reports that the provincial government’s spring budget bill, which received Royal Assent in June, includes amendments to both the Securities Act and the Commodity Futures Act. Some of the most significant amendments deal with the registration reform being planned by the Canadian Securities Administrators, which would overhaul registration categories, alter the basis of registration and set out registration requirements. The reg reform rule is expected to be submitted to members of the CSA for approval and then published in mid-July if approved, with late September as the planned implementation date.

Other budget bill provisions, when proclaimed in force, would also affect various existing commission rules, including the rule setting out prospectus and registration exemptions, and a rule dealing with the resale of securities.

In addition, the bill provides changes to both securities and commodity futures legislation that would grant authority to both the commission and the province “to take immediate action in extraordinary circumstances to protect the public interest”.

Under those provisions, the OSC would be authorized to make cease trade orders that expire in 10 days; and with the approval of the minister of finance, the commission is also authorized to make regulations that are revoked in 30 days, but that can be extended for further 30-day periods. The lieutenant governor in council is also authorized to make regulations. Criteria are set out for determining whether extraordinary circumstances exist.

IE