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3rd Session, 41st Legislature

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Bill 23

THE COMMODITY FUTURES AMENDMENT AND SECURITIES AMENDMENT ACT


  Bilingual version (PDF) Explanatory Note

(Assented to                                         )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

PART 1

THE COMMODITY FUTURES ACT

C.C.S.M. c. C152 amended

1           The Commodity Futures Act is amended by this Part.

2           The definition "decision" in subsection 1(1) is replaced with the following:

"decision", in relation to

(a) the commission or the director, means a direction, decision, order, ruling or other requirement made by the commission or the director under this Act, the regulations or the rules, or

(b) a self-regulatory organization, means a decision or order made by the self-regulatory organization under a power or duty assigned to it under this Act or the regulations; (« décision »)

3           Section 21 is amended by striking out "substantially".

4           The following is added after section 23 as part of Part 3:

Review of self-regulatory organization's decision

23.1(1)     Any person or company affected by a decision of a self-regulatory organization may, within 30 days after the decision is made, apply to the commission for a hearing to review the decision. On receiving the application, the commission has discretion whether to review the decision.

Application of Securities Act

23.1(2)     If the commission decides to review the decision, Part IV (Appeals) of The Securities Act applies, with necessary modifications, to the review as if the decision were a decision of the director.

Rights of enforcement staff

23.1(3)     If the decision of a self-regulatory organization relates to an investigation or disciplinary proceeding conducted by that organization, the organization's staff that conducted the investigation or initiated or conducted the disciplinary proceeding

(a) is deemed to be affected by the decision; and

(b) may apply under subsection (1) to have the commission review the decision.

Registering decision in Court of Queen's Bench

23.2(1)     A self-regulatory organization that has made a decision after a hearing may

(a) if the time period to apply for a review of the decision under subsection 23.1(1) has expired without an application for review having been filed, register a certified copy of the decision in the Court of Queen's Bench;

(b) if the commission has made an order confirming or varying the decision after a review, register a certified copy of the commission's order in the Court of Queen's Bench.

Effect of registering decision or order

23.2(2)     A decision or order registered in the Court of Queen's Bench under subsection (1) may be enforced as if it were a judgment of the court.

5           Section 62 is amended, in the part before clause (a), by striking out "or a decision made under this Act, the regulations or the rules," and substituting "this Act, the regulations or the rules, or a decision of the commission,".

6           The following is added after section 62:

Registering commission order in Court of Queen's Bench

62.1        If the commission has made an order authorized by this Act or the regulations after a hearing, the order may be registered in the Court of Queen's Bench and, once registered, may be enforced as if it were a judgment of that court.

7           Section 63 is amended by striking out "No proceedings" and substituting "Subject to sections 23.2 and 62.1, no proceedings".

8           Subsection 66(1) is replaced with the following:

Commission's power to exempt

66(1)       If the commission considers it not to be prejudicial to the public interest to do so, it may

(a) order that a person or company is exempt from

(i) a decision of the commission,

(ii) a provision of the Act, the regulations or the rules, or

(iii) a ruling or order made under the Act, the regulations or the rules; and

(b) impose any terms or conditions on the exemption that it considers advisable.

9           Subsection 69(2) of the French version is amended by striking out "directeurs" and substituting "administrateurs".

PART 2

THE SECURITIES ACT

C.C.S.M. c. S50 amended

10          The Securities Act is amended by this Part.

11          The definition "decision" in subsection 1(1) is replaced with the following:

"decision", in relation to

(a) the commission or the Director, means a direction, decision, order, ruling or other requirement made by the commission or the Director under

(i) this Act or the regulations, or

(ii) a delegation or other transfer of an extra-provincial authority under section 164, or

(b) a self-regulatory organization, means a decision or order made by the self-regulatory organization under a power or duty assigned to it under this Act or the regulations; (« décision »)

12          Subsection 4(2) is amended by replacing clause (a) with the following:

(a) sections 22 to 29, section 31.5.1 and subsection 149.1(1) of this Act;

(a.1) section 23.1 of The Commodity Futures Act; or

13          Subsection 28(2) is replaced with the following:

Suspension of registration

28(2)       If the commission has ordered a registrant to pay costs under subsection (1), it may suspend the registration of the registrant until the costs are paid.

14          Subsection 29(1) is amended

(a) in the section heading of the English version, by striking out "by commission" and substituting "of Director's action"; and

(b) by striking out everything after "may," and substituting "within 30 days after the direction, decision, order or ruling is made, apply to the commission for a review. On receiving the application, the commission must conduct a hearing.".

15          The following is added after section 31.5:

Review of self-regulatory organization's decision

31.5.1(1)   Any person or company affected by a decision of a self-regulatory organization may, within 30 days after the decision is made, apply to the commission for a review of the decision. On receiving the application, the commission has discretion whether to review the decision.

Application of Part IV

31.5.1(2)   If the commission decides to review the decision, Part IV (Appeals) of this Act applies, with necessary modifications, to the review as if the decision were a decision of the Director.

Rights of enforcement staff

31.5.1(3)   If the decision of a self-regulatory organization relates to an investigation or disciplinary proceeding conducted by that organization, the organization's staff that conducted the investigation or initiated or conducted the disciplinary proceeding

(a) is deemed to be affected by the decision; and

(b) may apply under subsection (1) to have the commission review the decision.

Registering decision in Court of Queen's Bench

31.5.2(1)   A self-regulatory organization that has made a decision after a hearing may

(a) if the time period to apply for a review of the decision under subsection 31.5.1(1) has expired without an application for review having been filed, register a certified copy of the decision in the Court of Queen's Bench;

(b) if the commission has made an order confirming or varying the decision after a review, register a certified copy of the commission's order in the Court of Queen's Bench.

Effect of registering decision or order

31.5.2(2)   A decision or order registered in the Court of Queen's Bench under subsection (1) may be enforced as if it were a judgment of that court.

Immunity for self-regulatory organizations

31.5.3      No action or proceeding may be brought against a self-regulatory organization or its members, employees, agents or directors for anything done or not done, or for any neglect, in the performance or exercise, or the intended performance or exercise, in good faith of a power or duty assigned to it under section 31.5.

16          The following is added after section 152:

Registering commission order in Court of Queen's Bench

152.1       If the commission has made an order authorized by this Act or the regulations after a hearing, the order may be registered in the Court of Queen's Bench and, once registered, may be enforced as if it were a judgment of that court.

Coming into force

17          This Act comes into force on the day it receives royal assent.

Explanatory Note

This Bill amends The Commodity Futures Act and The Securities Act.

After holding a hearing, the Manitoba Securities Commission may file an order in the Court of Queen's Bench. The order may then be enforced as if it were a judgment of the court.

The Bill further amends the two Acts to make the following changes with respect to self-regulatory organizations recognized by the Manitoba Securities Commission:

  • allowing a party affected by a decision of a self-regulatory organization to apply to the Commission for a review of the decision;
  • allowing a decision of a self-regulatory organization to be filed in the Court of Queen's Bench and enforced as if it were a judgment of the court;
  • providing immunity to a self-regulatory organization for actions taken in good faith under a power or duty assigned to the organization under Manitoba securities law.