ASC now automatically reciprocates other Canadian sanction orders
CALGARY – The Alberta Securities Commission (ASC) today announced an enhancement to cross-Canada enforcement of securities laws.
Effective July 1, 2015, new section 198.1 of the Securities Act (Alberta) will mean that most new orders and settlement agreements made by other securities regulatory authorities in Canada automatically take effect in Alberta as well.
Going forward, when another securities regulatory authority in Canada issues an order or enters into an agreement that imposes sanctions, conditions, restrictions or requirements on a person or company, it will automatically apply in Alberta. That order or agreement will come into effect without notice to the person or company and without a hearing. The order will have effect as if it were made by the Alberta Securities Commission, with only such modifications as the circumstances require. If the original order or agreement is varied, amended or revoked, that change will also apply in Alberta.
“This provision will take a good system of inter-jurisdictional reciprocation of enforcement decisions, and make it even faster and more effective,” said Bill Rice, Chair and Chief Executive Officer of the ASC. “When there are findings or admissions of a breach of securities laws, or acts contrary to the public interest in another province or territory, sanctions such as cease-trade orders and director and officer bans will instantly have effect in Alberta as well. That’s a very positive step to protect Alberta investors and market participants.”
Under the new provisions, orders or agreements by international regulators – such as the U.S. Securities and Exchange Commission – can be reciprocated in Alberta by an order of the ASC, but this will not occur automatically.
The ASC is the regulatory agency responsible for administering the province’s securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada’s capital markets.