Mr. Speaker, I move, seconded by the Hon. Member for Range Lake, that Bill 7, Securities Act, be read for the second time.
Mr. Speaker, this bill modernizes our framework for regulating trading in securities in the Northwest Territories and enables full implementation of the “passport system” for the regulation of the securities industry in Canada. Established by an inter-provincial/territorial agreement, the passport system has been designed to give market participants access to capital markets across Canada based on consistent laws and the decision of the securities regulator in the participant’s home jurisdiction.
The bill provides for the appointment of a superintendent responsible for the administration of the act and sets out the powers and functions of the superintendent and his or her authority to delegate those powers and functions, including the authority to delegate powers and functions to another Canadian securities regulator and to accept a delegation of powers and functions from another Canadian securities regulator.
The bill sets out procedures and rules which must be followed by every market participant and every person trading in securities, including the prospectus filing; take-over bid and continuous disclosure requirements of issuers; the registration requirements of dealers and advisers; and insider trading reporting requirements. The bill contains offences for contravening these requirements as well as engaging in various misleading, fraudulent or unfair practices.
The bill gives the superintendent the authority to investigate suspected wrongdoing, and provides improved powers to protect the investing public: in particular, the power to review the activities of market participants, to hold hearings, and to make various orders to protect the public interest, including orders that a person or company that has contravened the act must cease trading in securities, limit their activities as a market participant and pay an administrative penalty.
The bill gives investors a range of civil remedies by which they can seek compensation. These remedies include the right to withdraw from a purchase of securities, and the right to bring an action for damages or rescission for misrepresentation or other wrongdoing that results in a loss to the investor. Civil remedies would also be expanded to cover trading on secondary markets.
The bill authorizes the making of both regulations and detailed rules relating to the regulation of securities markets, sets out consequential amendments to the Business Corporations Act, and provides transitional rules that apply to transactions that commence under the existing Securities Act but continue under the new act.
Mahsi, Mr. Speaker.
