BCSC gains new powers through legislative amendments

VANCOUVER, BC, July 25, 2023 /CNW/ - The B.C. Securities Commission (BCSC) has gained greater powers to advance investigations of investment market misconduct and hold people accountable for their illegal acts, under a package of legislative amendments that came into force July 17.

The updates to B.C.'s Securities Act include a provision enabling the BCSC to impose consequences for failing to comply with a summons or demand to provide information. Until now, the BCSC had to apply to the Supreme Court for an order that a non-cooperative person be liable for contempt, a time-consuming process. Now, the BCSC can use its administrative processes to impose swifter consequences – restrictions on market participation and administrative penalties up to $1 million – for failing to comply.

In addition to the Act amendments, the Pension Benefits Standards Act and the Pooled Registered Pension Plans Act have been amended to make clear that certain pension derived funds are not exempt from enforcement processes arising from orders made under the Act. These amendments enhance the BCSC's ability to collect BCSC-imposed penalties.

"The BCSC's enforcement and collection capabilities were already among the strongest of any securities regulator in Canada," said Brenda Leong, the BCSC's Chair and CEO. "These amendments strengthen BCSC's ability to investigate misconduct and support stronger protections for investors."

Other updates to the Act include:

• An amendment giving the BCSC rule-making authority to regulate auditors of registrants. Such regulations could include standards on the audits conducted of registrants, which would be consistent with the approach to auditors of U.S. registrants.
• An amendment giving the BCSC rule-making authority to impose continuous disclosure obligations on issuers that are not reporting issuers, such as pooled funds. Most other Canadian jurisdictions impose limited continuous disclosure obligations – primarily financial disclosure – on certain types of investment funds.
• An amendment allowing the BCSC to seek court orders – including payment of restitution or damages – if a person has been convicted of a Criminal Code offence related to securities or derivatives.

About the B.C. Securities Commission (www.bcsc.bc.ca)

The B.C. Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

• A securities market that is fair and warrants public confidence
• A dynamic and competitive securities industry that provides investment opportunities and access to capital.

Learn how to protect yourself and become a more informed investor at www.investright.org.

SOURCE British Columbia Securities Commission

Media Contact: Brian Kladko, 604-899-6713; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), [email protected]