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The Securities Amendment Act (Reciprocal Enforcement)

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If you need an official copy, use the bilingual (PDF) version.

S.M. 2017, c. 2

Bill 2, 2 nd Session, 41st Legislature

The Securities Amendment Act (Reciprocal Enforcement)

Explanatory Note

This note is a reader's aid and is not part of the law.

Before this enactment, The Securities Act provided that an order or settlement agreement from another Canadian jurisdiction took effect in Manitoba only after the Manitoba Securities Commission held a hearing and issued a reciprocal enforcement order.

This Act provides for the automatic enforcement of sanctions, conditions, restrictions or requirements imposed by another Canadian securities regulator when there has been a finding or admission of a breach of securities laws, or acts contrary to the public interest.

A market participant affected by automatic reciprocity has the right to seek a ruling from the commission.

(Assented to June 2, 2017)

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

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

1           The Securities Act is amended by this Act.

2           The following is added after subsection 148.4(2):

Certain extra-provincial orders to take effect automatically in Manitoba

148.4(3)    Despite subsection (1), an order by a securities regulatory authority in Canada imposing sanctions, conditions, restrictions or requirements takes effect in Manitoba without notice and without an opportunity to be heard, as if it had been made by the commission, but only if

(a) the order resulted from a finding or admission of

(i) a contravention of laws respecting the trading of securities or derivatives, or

(ii) conduct contrary to the public interest; and

(b) the order was made after the day this section came into force.

For the purpose of this section, the order takes effect with such changes as the circumstances require.

Certain extra-provincial agreements to take effect automatically in Manitoba

148.4(4)    Despite subsection (1), an agreement between a person or company and a securities regulatory authority in Canada imposing sanctions, conditions, restrictions or requirements takes effect in Manitoba without notice and without an opportunity to be heard, as if it had been made by the commission, but only if

(a) the agreement resulted from a finding or admission of

(i) a contravention of laws respecting the trading of securities or derivatives, or

(ii) conduct contrary to the public interest; and

(b) the agreement was entered into after the day this section came into force.

For the purpose of this section, the agreement takes effect with such changes as the circumstances require.

Exemptions from subsections (3) and (4)

148.4(5)    Subsections (3) and (4) do not apply to

(a) a requirement, in an order or agreement made by or entered into with a securities regulatory authority in Canada, to pay costs, administrative penalties or any other amounts;

(b) an order or agreement made by or entered into with a securities regulatory authority in Canada arising solely as a result of reciprocal enforcement steps taken by that authority with respect to an order by or agreement with another securities regulatory authority in Canada; or

(c) an order or agreement made by or entered into with a securities regulatory authority in Canada that has been rescinded or overturned in accordance with applicable laws.

Application of subsections (3) and (4) if order or agreement varied or amended

148.4(6)    If an order or agreement made by or entered into with a securities regulatory authority in Canada has been varied or amended in accordance with applicable laws, subsections (3) and (4) apply to the order or agreement as varied or amended.

Order respecting automatic recognition

148.4(7)    On application by the Director or by a person or company affected by subsection (3) or (4), the commission may, after providing the Director and the affected person or company an opportunity to be heard, make an order with respect to the applicability of subsections (3) and (4).

Compliance requirement

148.4(8)    A person or company that is subject to an order or agreement to which subsection (3) or (4) applies must comply with any term of that order or agreement, unless

(a) the term is rendered non-applicable by subsection (5) or (6); or

(b) the commission has issued an order under subsection (7) ruling that the term does not apply in Manitoba.

Coming into force

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