BCSC can now impose consequences for failing to comply with a summons
The BC Securities Commission (BCSC) has announced that a comprehensive package of legislative amendments came into force on July 17, enhancing the BCSC’s powers to investigate investment market misconduct and hold people accountable for their illegal acts.
One of the key updates to BC's Securities Act is a provision that empowers the BCSC to take swift action against non-cooperative individuals who fail to comply with a summons or demand for information. Previously, the BCSC had to resort to time-consuming court processes such as applying to the Supreme Court for an order that a non-cooperative person be liable for contempt. Now, the BCSC can use its administrative procedures to impose faster consequences, including market participation restrictions and administrative penalties of up to $1 million.
Additionally, amendments have been made to the Pension Benefits Standards Act and the Pooled Registered Pension Plans Act, making it clear that certain pension-derived funds are not exempt from enforcement processes resulting from orders issued under the act. These amendments bolster the BCSC's ability to collect penalties imposed by the commission.
BCSC chair and CEO Brenda Leong highlighted that these amendments strengthen the commission's position as one of Canada's most robust securities regulators. Some of the notable updates to the act include the grant to the BCSC the authority to create rules to regulate auditors of registrants, setting standards for audits of registrants similar to those applicable to auditors of US registrants. The BCSC also gained the authority to impose continuous disclosure obligations on issuers that are not reporting issuers, such as pooled funds.
The BCSC also gained the power to seek court orders, including restitution or damages payments, in cases where a person has been convicted of a Criminal Code offence related to securities or derivatives.
"The BCSC's enforcement and collection capabilities were already among the strongest of any securities regulator in Canada. These amendments strengthen BCSC's ability to investigate misconduct and support stronger investor protections," Leong said.
