Exploring Corporate Governance Around the World

By Allison Garrett, Senior Vice President for Academic Affairs at Oklahoma Christian University

Wednesday, November 08, 2006

Changes to Canada's Securities Laws

The OSC's most recent Carswell Bulletin outlines several changes that have been proposed to Canada's securities laws. Here's a link to the bulletin; scroll down to Chapter 9 for Legislation.

In mid-October, Canada's Minister of Finance proposed a series of amendments that will harmonize Ontario's securities laws with the laws of other Canadian jurisdictions. There is no single, national securities regulator in Canada. Instead, each province has its own regulatory scheme.

Among the proposed changes are:
1. Giving the OSC authority to designate as an insider anyone who has access to material information about the issuer in the ordinary course. Presumably, this would allow finance and accounting personnel, as well as attorneys working on the issuer's deals, to be designated as insiders for reporting purposes.
2. Harmonize Ontario's definitions of terms "insider," "director" and "officer" with the definitions in other Canadian jurisdictions.
3. Harmonize certain prospectus issues with other Canadian jurisdictions.
4. Provide courts with authority to order restitution.

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