BILL 62
An Act to Amend the
Securities Act
Her Majesty, by and with the advice and
consent of the Legislative Assembly of New Brunswick, enacts as follows:
1 Section
1 of the Securities Act, chapter S-5.5 of the Acts of New Brunswick,
2004, is amended
(a) in subsection (1)
(i) in the French
version in the definition « corporation » by striking out “toute
autre personne morale” and substituting “toute autre corporation”;
(ii) in the definition “decision”
by striking out “this Act or the regulations” and substituting “this Act or the regulations
or under a delegation or transfer of an extra-provincial authority
under section 195.11”;
(iii) by repealing
the definition “insider” or “insider of a reporting
issuer”;
(iv) by repealing
the definition “investment fund manager” and substituting
the following:
“investment fund manager” means
a person who directs the business, operations or affairs of an investment
fund. (gestionnaire de fonds d’investissement)
(v) in the English
version in the definition “issuer” by striking out “who
has outstanding, issues or proposes to issue a security” and
substituting “who has
a security outstanding, is issuing a security or proposes to issue
a security”;
(vi) in the definition “market
participant”
(A) in paragraph
(b) by striking out “from the requirement to be registered under
this Act” and substituting “from the requirement to be registered under this Act or the
regulations”;
(B) in paragraph
(e) by striking out “a mutual fund” and substituting “an investment fund”;
(C) in paragraph
(j) by striking out “prescribed” and substituting “designated”;
(vii) in the definition “mutual
fund”
(A) in the portion
preceding paragraph (a) by striking out “includes” and
substituting “means”;
(B) in subparagraph
(a)(ii) of the English version by adding “or” at the end of the subparagraph;
(C) by
repealing paragraph (b) and substituting the following:
(b) an issuer that is
(i) designated to be a mutual fund in
an order made under subsection 1.1(2), or
(ii) in a class of persons designated
by the regulations,
(D) by repealing
paragraph (c);
(E) by striking
out the portion following paragraph (c) and substituting the following:
but does not include an issuer, or a class
of issuers, that is designated not to be a mutual fund by an order
made under subsection 1.1(1) or
by a regulation. (fonds commun de
placement)
(viii) in the definition “New
Brunswick securities law”
(A) in paragraph
(b) of the English version by striking out “and” at the
end of the paragraph;
(B) in paragraph
(c) by striking out the period at the end of the paragraph and substituting
a comma followed by “and”;
(C) by adding
after paragraph (c) the following:
(d) any extra-provincial securities laws adopted or incorporated
by reference under section 195.3.
(ix) by repealing
the definition “officer” and substituting the following:
“officer”, with respect
to an issuer or a registrant, means (dirigeant)
(a) a chair or vice-chair of the board of directors, a chief
executive officer, a chief operating officer, a chief financial officer,
a president, a vice-president, a secretary, an assistant secretary,
a treasurer, an assistant treasurer and a general manager,
(b) an individual who is designated as an officer under
a by-law or similar authority, or
(c) an individual who
performs functions similar to those normally performed by an individual
referred to in paragraph (a) or (b).
(x) in the French
version in the definition « personne » by striking out “de
la société en nom collectif” and substituting “de la société de
personnes”;
(xi) in the definition “registered
adviser” by striking out “registered under this Act”
and substituting “registered
under this Act or the regulations”;
(xii) in the definition “registered
dealer” by striking out “registered under this Act”
and substituting “registered
under this Act or the regulations”;
(xiii) in the definition “registrant”
by striking out “registered or required to be registered under
this Act” and substituting “registered or required to be registered under this Act or
the regulations”;
(xiv) in the definition “reporting
issuer”
(A) in the portion
preceding paragraph a) of the French version by striking out “Sauf
si la Commission rend une ordonnance aux termes de l’article
95 à l’effet que l’émetteur est réputé
ne plus être un émetteur assujetti” and substituting
“Sauf si l’émetteur
est désigné comme n’étant pas un émetteur
assujetti ou fait partie d’une catégorie d’émetteurs
qui est désignée comme n’étant pas un émetteur
assujetti par ordonnance rendue aux termes du paragraphe 1.1(1) ou par règlement”;
(B) in paragraph
(a) in the portion preceding subparagraph (i) by striking out “voting”;
(C) by
repealing paragraph (d) and substituting the following:
(d) that has exchanged its securities with another issuer
or with the holders of the securities of that other issuer in connection
with a reorganization, amalgamation, merger or arrangement or similar
business combination if one of the parties to the reorganization,
amalgamation, merger or arrangement or similar business combination
was a reporting issuer at the time of the reorganization, amalgamation,
merger or arrangement or similar business combination,
(D) by
repealing paragraph (e) and substituting the following:
(e) that is designated to be a reporting issuer in an order
made under subsection 1.1(2), or
(E) by
repealing paragraph (f) and substituting the following:
(f) that is in a class of persons designated by the regulations,
(F) by
striking out the portion following paragraph (f) of the English version
and substituting the following:
but does not include an issuer, or a class
of issuers, that is designated not to be a reporting issuer by an
order made under subsection 1.1(1)
or by a regulation. (émetteur
assujetti)
(xv) in the definition “sales
literature” by striking out “except preliminary prospectuses”
and substituting “except
offering memoranda, preliminary prospectuses”;
(xvi) in the definition “self-regulatory
organization” by striking out “represents registrants
and”;
(xvii) by repealing
the definition “senior officer”;
(xviii) by adding
the following definitions in alphabetical order:
“economic interest” means (intérêt financier)
(a) a right to receive
or the opportunity to participate in a reward, benefit or return from
a security, or
(b) the exposure to a risk of a financial loss in
respect of a security.
“forward-looking information”
means disclosure regarding possible events, conditions or results
of operations that is based on assumptions about future economic conditions
and courses of action and includes future-oriented financial information
with respect to prospective results of operations, financial position
or cash flows that is presented either as a forecast or a projection. (information prospective)
“insider” means (initié)
(a) a director or officer
of an issuer,
(b) a director or officer of a person who is itself
an insider or subsidiary of an issuer,
(c) a person who has
(i) beneficial ownership of, or control
or direction over, directly or indirectly, securities of an issuer
carrying more than 10% of the voting rights attached to all the issuer’s
outstanding voting securities, excluding, for the purpose of the calculation
of the percentage held, any securities held by the person as underwriter
in the course of a distribution, or
(ii)
a combination of beneficial ownership of, and control or direction
over, directly or indirectly, securities of an issuer carrying more
than 10% of the voting rights attached to all the issuer’s outstanding
voting securities, excluding, for the purpose of the calculation of
the percentage held, any securities held by the person as underwriter
in the course of a distribution,
(d) an issuer that has
purchased, redeemed or otherwise acquired a security of its own issue,
for so long as it continues to hold that security,
(e) a person designated
to be an insider in an order made under subsection 1.1(2), or
(f) a person that is in
a class of persons designated by the regulations,
but does not include any person, or a class
of persons, that is designated not to be an insider by an order made
under subsection 1.1(1) or by a
regulation.
“member of the Commission”
means (membre de la Commission)
(a) the Chair, or
(b) a member of the Commission
appointed under subsection 7(1).
“non-redeemable investment
fund” means (fonds d’investissement à capital
fixe)
(a) an issuer
(i) whose
primary purpose is to invest money provided by its security holders,
(ii) that does not invest
(A) for the purpose of exercising
or seeking to exercise control of an issuer, other than an issuer
that is a mutual fund or a non-redeemable investment fund, or
(B) for the purpose of being actively
involved in the management of any issuer in which it invests, other
than an issuer that is a mutual fund or a non-redeemable investment
fund, and
(iii) that is not a mutual fund,
or
(b) an issuer that is
(i) designated
to be a non-redeemable investment fund in an order made under subsection 1.1(2), or
(ii)
in a class of persons designated by the regulations,
but does not include an issuer, or a class
of issuers, that is designated not to be a non-redeemable investment
fund by an order made under subsection 1.1(1) or by a regulation.
“related financial instrument”
means (instrument financier lié)
(a) an instrument, an agreement or a security the value,
market price or payment obligations of which are derived from, referenced
to or based on the value, market price or payment obligations of a
security, or
(b) any other instrument or agreement or any understanding
that affects, directly or indirectly, a person’s economic interest
in a security.
“securities regulatory authority”,
except in Part 15.1, means a person empowered by the laws of a jurisdiction
to regulate trading in securities or to administer or enforce laws
respecting trading in securities. (organisme de réglementation
des valeurs mobilières)
“supplementary member of the Commission”
means a supplementary member of the Commission appointed under subsection 7.1(1). (membre supplémentaire
de la Commission)
(b) by repealing subsection
(7);
(c) by repealing subsection
(8);
(d) by repealing subsection
(9).
2 The Act is amended by adding after section
1 the following:
Designation orders
1.1(1) The Commission may, if the Commission is of the opinion that
to do so would not be prejudicial to the public interest, make an
order, subject to such terms and conditions as it considers appropriate,
designating, for the purposes of New Brunswick securities law, a person
or class of persons not to be
(a) an insider,
(b) a reporting issuer,
(c) a mutual fund, or
(d) a non-redeemable investment fund.
1.1(2) The Commission may, if in the opinion of the Commission it is
in the public interest, make an order designating, for the purposes
of New Brunswick securities law, a person to be
(a) an insider,
(b) a reporting issuer,
(c) a mutual fund, or
(d) a non-redeemable investment fund.
1.1(3) An order under subsection (1) or (2) may be made on the application
of an interested person or the Executive Director.
1.1(4) The Commission shall not make an order under subsection (1) or
(2) without giving an interested person or the Executive Director
an opportunity to be heard.
1.1(5) An order under subsection (1) may be retroactive in its operation.
3 Subsection
3(2) of the Act is amended by striking out “other members”
and substituting “other
members of the Commission”.
4 Paragraph
5(c) of the Act is amended by striking out “administration and
enforcement of this Act” and substituting “administration and enforcement of
this Act and the regulations”.
5 The
heading “Members other than Chair” preceding section 7
of the Act is repealed and the following is substituted:
Members of the Commission other than the
Chair
6 The Act is amended by adding after section
7 the following:
Supplementary members of the Commission
7.1(1) Notwithstanding subsection 3(2), the Lieutenant-Governor in Council may appoint persons as supplementary
members of the Commission for the purposes of section 23.1.
7.1(2) Except as otherwise provided in this Act or the regulations,
a supplementary member of the Commission shall not exercise or perform
any power or duty under this Act or the regulations except as a member
of a hearing panel to which he or she has been assigned under section 23.1 by the Chair.
7.1(3) Supplementary members of the Commission shall be appointed for
a term not exceeding 3 years and may be reappointed.
7.1(4) Supplementary members of the Commission are entitled to be paid
such remuneration as is fixed by the by-laws of the Commission.
7.1(5) Each supplementary member of the Commission is entitled to be
paid such travelling and living expenses incurred by him or her in
the performance of his or her duties as are fixed by the by-laws of
the Commission.
7 The
Act is amended by repealing section 10 and substituting the following:
10(1) Notwithstanding subsections 7(1) and 8(1) and subject to section 11,
a member of the Commission remains in office until he or she resigns
or is reappointed or replaced.
10(2) If a member of the Commission or a supplementary member of the
Commission resigns or is replaced, the Chair may authorize that person
to carry out and complete the duties and exercise any powers that
the person would have had, if the person had not ceased to be a member
of the Commission or supplementary member of the Commission, in connection
with any matter in respect of which there was a hearing in which the
person participated as a member of the Commission or supplementary
member of the Commission.
10(3) An authorization under subsection (2) continues until a final
decision in respect of the matter is made.
10(4) If a person performs duties or exercises powers under subsection
(2), section 9 or subsections 7.1(4) and (5), as the case may be, shall
continue to apply as though the person were still a member of the
Commission or supplementary member of the Commission.
8 Section
11 of the Act is amended by striking out “Chair and any other
member of the Commission” and substituting “Chair or any other member of the
Commission or any supplementary member of the Commission”.
9 Section
12 of the English version of the Act is amended
(a) in subsection
(1) by striking out “or other member” and substituting “or other member of
the Commission”;
(b) in subsection (2) by
striking out “of any member of the Commission, other than the
Chair, appoint a substitute for the member” and substituting “of any member of the
Commission, other than the Chair, appoint a substitute for the member
of the Commission”;
(c) in subsection (3) by
striking out “member” and substituting “member of the Commission”.
10 Section
13 of the Act is amended by striking out “constitute a quorum”
and substituting “constitute
a quorum of the Commission”.
11 Section
16 of the Act is repealed and the following is substituted:
16(1) The Executive Director may in writing
delegate his or her powers or duties under this Act or the regulations
to an employee of the Commission.
16(2) The Executive Director may, in a written delegation under subsection
(1),
(a) impose on the delegate terms and conditions that the
Executive Director considers appropriate, and
(b) authorize the delegate to subdelegate in writing the
powers or duties to an employee of the Commission and to impose on
the subdelegate any terms and conditions that the delegate considers
appropriate, in addition to those imposed in the Executive Director’s
written delegation.
16(3) A delegate or subdelegate to whom this section applies shall
comply with any terms and conditions imposed in the Executive Director’s
written delegation.
16(4) A subdelegate to whom this section applies shall comply with
any terms and conditions imposed on the subdelegate by the delegate.
16(5) The Executive Director may revoke, in whole or in part, a written
delegation made under subsection (1).
16(6) An employee of the Commission who subdelegates a power or duty
as authorized in a written delegation made under subsection (1) may
revoke, in whole or in part, the subdelegation.
16(7) A decision, ruling, order, temporary order or direction made
by a person under a written delegation or subdelegation made under
this section shall be deemed to be a decision, ruling, order, temporary
order or direction of the Executive Director.
12 Section
20 of the Act is amended
(a) by striking out the
portion preceding paragraph (a) and substituting the following:
20 No action or other proceeding may be brought
against any of the following persons 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 any power or duty under
the authority of this Act or the regulations:
(b) by adding after paragraph
(c) the following:
(c.1) any supplementary member or former supplementary member
of the Commission;
(c) in paragraph (f) by
striking out “this Act or the instructions of a person referred
to in paragraph (a), (b), (c) or (d)” and substituting “this Act or the regulations
or the instructions of a person referred to in paragraph (a), (b), (c), (c.1) or (d)”.
13 Section
21 of the Act is amended
(a) in subsection (1) by
striking out the portion preceding paragraph (a) and substituting
the following:
21(1) Except in relation to an action by or on behalf of the Commission,
in which case the approval of the Court of Queen’s Bench must
first be obtained, the Commission may indemnify the Chair or a former
Chair, any other member or former member of the Commission, any supplementary
member or former supplementary member of the Commission or any employee
or former employee of the Commission, and his or her heirs and legal
representatives, against all costs, charges and expenses, including
an amount paid to settle an action or satisfy a judgment, reasonably
incurred by him or her in relation to any civil, criminal or administrative
action or proceeding to which he or she is made a party by reason
of being or having been the Chair, another member of the Commission,
a supplementary member of the Commission or an employee of the Commission,
if he or she
(b) in subsection (2) in
the portion preceding paragraph (a) by striking out “the Chair
or other member of the Commission or an employee of the Commission”
and substituting “the
Chair, another member of the Commission, a supplementary member of
the Commission or an employee of the Commission”;
(c) in subsection (3) by
striking out “as the Chair or as another member of the Commission
or as an employee of the Commission” and substituting “as the Chair, as another
member of the Commission, as a supplementary member of the Commission
or as an employee of the Commission”.
14 Section
22 of the Act is amended
(a) in subsection (1)
(i) in paragraph (a)
of the English version by adding “and” at the
end of the paragraph;
(ii) by repealing
paragraph (b);
(b) by repealing subsection
(2).
15 Section 23 of the Act is amended
(a) in subsection (1) by
striking out “this Act” and substituting “this Act or the regulations”;
(b) by adding after subsection
(5) the following:
23(6) The Commission may receive in evidence any statement, document,
record, information or thing that, in the opinion of the Commission,
is relevant to the matter before it, whether or not the statement,
document, record, information or thing is given or produced under
oath or would be admissible as evidence in a court of law.
16 The
Act is amended by adding after section 23 the following:
Hearing panels of the Commission
23.1(1) The Chair may assign 2 or more persons from among the members
of the Commission and supplementary members of the Commission to sit
as members of a hearing panel of the Commission and may direct the
hearing panel to conduct any hearing or review that the Commission
itself could conduct under this Act or the regulations.
23.1(2) Two members of a hearing panel of the Commission constitute a
quorum at a hearing or review conducted by the hearing panel.
23.1(3) A decision, ruling, order, temporary order or direction made
by a hearing panel of the Commission, or any action taken by a hearing
panel of the Commission, at a sitting of a hearing panel shall be
deemed to be a decision, ruling, order, temporary order or direction
of the Commission or action of the Commission, as the case may be.
23.1(4) A hearing panel of the Commission has, with respect to its duties,
the same jurisdiction as that of the Commission and may exercise all
the powers of the Commission under this Act or the regulations with
respect to a hearing or review that the hearing panel is directed
to conduct, and, for that purpose, any reference in this Act or the
regulations to the Commission is deemed to be a reference to a hearing
panel of the Commission.
23.1(5) The Chair may designate a member of a hearing panel of the Commission
to preside at any sitting of the hearing panel.
23.1(6) Two or more hearing panels of the Commission may be constituted
and may act simultaneously.
23.1(7) A hearing panel of the Commission shall conduct its sittings
separately from those of another hearing panel of the Commission being
conducted at the same time.
23.1(8) Where a hearing or review is being conducted by a hearing panel
of the Commission and a member of the hearing panel is for any reason
unable to complete the hearing or review, the remaining members may,
if they constitute a quorum of the hearing panel, complete the hearing
or review.
17 Section
24 of the Act is repealed and the following is substituted:
24(1) Subject to subsection (3), the Commission
may in writing delegate its powers or duties under this Act or the
regulations to the Chair, another member of the Commission, the Executive
Director, a committee of the Commission established by the by-laws
of the Commission or an employee of the Commission.
24(2) In a written delegation under subsection (1), the Commission
may
(a) impose on the delegate terms and conditions that it
considers appropriate, and
(b) in the case of a delegation of powers or duties to the
Executive Director, authorize the Executive Director to subdelegate
in writing the powers or duties to an employee of the Commission and
to impose on the subdelegate any terms and conditions that the Executive
Director considers appropriate, in addition to those imposed in the
Commission’s written delegation.
24(3) The Commission shall not delegate under subsection (1) the power
to conduct contested hearings on the merits or the power to make rules
under section 200.
24(4) A delegate or subdelegate to whom this section applies shall
comply with any terms and conditions imposed in the Commission’s
written delegation.
24(5) A subdelegate to whom this section applies shall comply with
any terms and conditions imposed on the subdelegate by the Executive
Director.
24(6) The Commission may revoke, in whole
or in part, a written delegation made under subsection (1).
24(7) Where the Executive Director subdelegates a power or duty as
authorized in a written delegation made under subsection (1), he or
she may revoke, in whole or in part, the subdelegation.
24(8) No member of the Commission who exercises a power or performs
a duty of the Commission under Part 13 in respect of a matter under
investigation shall sit on a hearing by the Commission that deals
with the matter, except with the written consent of the parties to
the proceeding.
24(9) A decision, ruling, order, temporary order or direction made
by a person under a written delegation or subdelegation made under
this section shall be deemed to be a decision, ruling, order, temporary
order or direction of the Commission.
18 Section
26 of the Act is amended by striking out “the other members
of the Commission” and substituting “the other members of the Commission,
the supplementary members of the Commission”.
19 Subsection
29(3) of the Act is amended by striking out “The members”
and substituting “The
members of the Commission, supplementary members of the Commission”.
20 Subsection
33(2) of the Act is repealed and the following is substituted:
33(2) The Committee shall consist of such
members as are appointed by the Minister.
21 Section
47 of the Act is repealed and the following is substituted:
47 An application for registration or amendment
to registration shall be made in accordance with the regulations.
22 The
heading “Granting registration” preceding section 48 of
the English version of the Act is repealed and the following is substituted:
Registration
23 Section
48 of the Act is amended
(a) in subsection (1)
(i) in the portion
preceding paragraph (a) by striking out “registration, renewal
or reinstatement of registration or amendment to registration”
and substituting “registration,
reinstatement of registration or amendment to registration”;
(ii) in paragraph
(a) of the English version by striking out “registration, renewal
or reinstatement of registration or amendment to registration”
and substituting “registration,
reinstatement of registration or amendment to registration”;
(iii) in paragraph
(b) of the English version by striking out “registration, renewal
or reinstatement of registration or amendment to registration”
and substituting “registration,
reinstatement of registration or amendment to registration”;
(b) by repealing subsection
(2) and substituting the following:
48(2) The Executive Director may at any time restrict a registration
by imposing such terms and conditions as he or she considers appropriate
on the registration and, without limiting the generality of the foregoing,
may restrict
(a) the duration of the registration, and
(b) the registration to trades in certain securities or
a certain class of securities.
(c) by repealing subsection
(4) and substituting the following:
48(4) The Executive Director shall not refuse to grant, reinstate or
amend a registration or impose terms and conditions on the registration
without giving the applicant or registrant an opportunity to be heard.
24 The
heading “Subsequent application” preceding section 49
of the Act is repealed.
25 Section
49 of the Act is repealed.
26 Section
51 of the Act is repealed and the following is substituted:
51(1) On the application of a registrant,
the Executive Director may accept, subject to such terms and conditions
as he or she considers appropriate, the voluntary surrender of the
registration of the registrant unless the Executive Director is of
the opinion that it could be prejudicial to the public interest to
do so.
51(2) On receiving an application under subsection
(1), the Executive Director may, without providing an opportunity
to be heard, suspend the registration.
27 Subsection
53(1) of the Act is repealed and the following is substituted:
53(1) Subject to subsection (2), the Executive
Director may, following a hearing, make an order suspending or cancelling
the registration of a registrant if the Executive Director is of the
opinion that
(a) the registrant has contravened or failed to comply with
a term or condition imposed on the registration under subsection 48(2), or
(b) the registrant has contravened or failed to comply with
section 54.
28 Section
55 of the Act is amended by adding after subsection (2) the following:
55(3) An order under subsection (1) may be
retroactive in its operation.
29 Paragraph
57(3)(b) of the Act is amended
(a) in subparagraph (i)
by striking out “from the requirement to be registered under
this Act” and substituting “from the requirement to be registered
under this Act or the regulations”;
(b) in subparagraph (ii)
by striking out “from the requirement to be registered under
this Act” and substituting “from the requirement to be registered
under this Act or the regulations”.
30 Section
58 of the Act is amended
(a) in subsection (1)
(i) by striking out
the portion preceding paragraph (a) and substituting the following:
58(1) No person shall make any representation, orally or in writing,
that the person or another person
(ii) in paragraph
(a) by striking out “the security” and substituting “a security”;
(iii) in paragraph
(b) by striking out “the security” and substituting “a security”;
(b) by adding after subsection
(1) the following:
58(1.1) Subsection (1) does not apply to a security that carries or
is accompanied by an obligation of the issuer to redeem or purchase
the security or a right of the owner of the security to require the
issuer to redeem or purchase the security.
(c) in subsection (4) by
striking out “No person, with the intention of effecting a trade
in a security,” and substituting “No person”.
31 The
Act is amended by adding after section 58 the following:
Important statement
58.1 A person shall not make a statement about something that a reasonable
investor would consider important in deciding whether to enter or
maintain a trading or advising relationship with the person if the
statement is misleading or untrue or does not state a fact that is
required to be stated or that is necessary to make the statement not
misleading.
Unfair practices prohibited
58.2(1) In this section, “unfair practice” includes
(a) putting unreasonable pressure on a person to
subscribe to, purchase, hold or trade a security,
(b) taking advantage of a person’s
(i) inability or incapacity to reasonably
protect the person’s own interests because of physical or mental
infirmity, ignorance, illiteracy or age, or
(ii) inability to understand the character,
nature or the language of any matter relating to a decision to subscribe
to, purchase, hold or trade a security, and
(c) imposing, with respect to transactions, terms, conditions,
restrictions or limitations that are harsh or oppressive.
58.2(2) No person shall engage in an unfair practice
(a) while advising in relation to the subscription for or
purchase or trading of a security, or
(b) with the intention of effecting the subscription for
or purchase or trading of a security.
32 Subsection
59(3) of the Act is amended by striking out “from the requirement
to be registered under this Act” and substituting “from the requirement to be
registered under this Act or the regulations”.
33 Section
64 of the Act is amended in the portion preceding paragraph (a) by
striking out “registered under this Act” and substituting “registered under this
Act or the regulations”.
34 Section 65 of the Act is amended by striking
out “has in any way passed judgment on” and substituting “has expressed an opinion
or in any way passed judgment on”.
35 Section
73 of the Act is repealed and the following is substituted:
73(1) Before the Executive Director accepts
the filing of a preliminary prospectus under this Part or the regulations,
the Executive Director may, if in the opinion of the Executive Director
it is in the public interest, require the person submitting the preliminary
prospectus for filing to satisfy conditions and additional filing
requirements.
73(2) On the filing of a preliminary prospectus under this Part or
the regulations, the Executive Director shall issue a receipt for
the preliminary prospectus.
36 Section
74 of the Act is amended
(a) by repealing subsection
(3) and substituting the following:
74(3) A prospectus shall contain such certificates as are required
by the regulations.
(b) by repealing subsection
(4).
37 Section
75 of the Act is amended
(a) by adding before subsection
(1) the following:
75(0.1) Before the Executive Director accepts the filing of a prospectus
under this Part or the regulations, the Executive Director may, if
in the opinion of the Executive Director it is in the public interest,
require the person submitting the prospectus for filing to satisfy
conditions and additional filing requirements.
(b) in subsection (1) by
striking out “this Part” and substituting “this Part or the regulations”;
(c) in paragraph (2)(a)
(i) by repealing subparagraph
(iv) and substituting the following:
(iv) having regard to the financial condition
of the issuer, of an officer, director, promoter or control person
of the issuer, of the investment fund manager of the issuer or of
an officer, director or control person of the investment fund manager,
the issuer cannot reasonably be expected to be financially responsible
in the conduct of its business,
(ii) by repealing
subparagraph (v) and substituting the following:
(v) the past conduct of the issuer, of
an officer, director, promoter or control person of the issuer, of
the investment fund manager of the issuer or of an officer, director
or control person of the investment fund manager affords reasonable
grounds for belief that the business of the issuer will not be conducted
with integrity and in the best interests of its security holders,
(iii)
in subparagraph (vi) by striking out “such escrow or pooling
agreement as the Executive Director considers necessary” and
substituting “an escrow
or pooling agreement in the form that the Executive Director considers
necessary”;
(iv) in subparagraph
(vii) of the English version by adding “or” at the end of the subparagraph;
(v) by repealing subparagraph
(viii).
38 Section 76 of the Act is repealed and the
following is substituted:
76(1) Where required to do so under this Part or the regulations, a
person shall file and deliver an amendment to a preliminary prospectus
in accordance with the regulations.
76(2) Subject to subsection (3), the Executive Director shall issue
a receipt for an amendment to a preliminary prospectus on the filing
of the amendment to the preliminary prospectus under this Part or
the regulations.
76(3) The Executive Director shall not issue a receipt for an amendment
to a preliminary prospectus if the Executive Director is of the opinion
that any of the circumstances referred to in subsection 75(2) exist.
39 Section
77 of the Act is repealed and the following is substituted:
77(1) Where required to do so under this
Part or the regulations and subject to subsection (3), a person shall
file and deliver an amendment to a prospectus in accordance with the
regulations.
77(2) An amendment to a prospectus shall contain such certificates
as are required by the regulations.
77(3) Before the Executive Director accepts the filing of an amendment
to a prospectus under this Part or the regulations, the Executive
Director may, if in the opinion of the Executive Director it is in
the public interest, require the person submitting the amendment to
the prospectus for filing to satisfy conditions and additional filing
requirements.
77(4) Subject to subsection (5), the Executive Director shall issue
a receipt for an amendment to a prospectus on the filing of the amendment
to the prospectus under this Part or the regulations.
77(5) The Executive Director shall not issue a receipt for an amendment
to a prospectus if the Executive Director is of the opinion that any
of the circumstances referred to in subsection 75(2) exist.
77(6) The Executive Director shall not refuse to issue a receipt under
subsection (5) without giving the person who filed the amendment to
the prospectus an opportunity to be heard.
40 Section
78 of the Act is repealed and the following is substituted:
78(1) No person shall continue a distribution
of a security to which subsection 71(1) applies after the lapse date prescribed by regulation unless
the distribution is in accordance with the regulations.
78(2) If a distribution to which subsection (1) applies is not in accordance
with the regulations, all trades completed after the lapse date prescribed
by regulation may be cancelled at the option of the purchaser in accordance
with the regulations.
41 Section
80 of the Act is amended by adding after subsection (3) the following:
80(4) An order under subsection (1) may be
retroactive in its operation.
42 The
heading “Distribution of preliminary prospectus” preceding
section 83 of the Act is repealed.
43 Section
83 of the Act is repealed.
44 The
heading “Distribution list” preceding section 84 of the
Act is repealed.
45 Section
84 of the Act is repealed.
46 Section
85 of the Act is amended by striking out “record maintained
under section 84” and substituting “record maintained in accordance
with the regulations”.
47 Section 88 of the Act is repealed and the
following is substituted:
88(1) A person within a class of persons that is prescribed by regulation
who receives an order or subscription for a security offered in a
distribution to which subsection 71(1) or 78(1) applies shall deliver
to the purchaser, in accordance with the regulations,
(a) the latest prospectus filed or required to be filed
under this Act or the regulations, and
(b) any amendment to the prospectus filed or required to
be filed under this Act or the regulations.
88(2) A person who purchases a security under a distribution to which
subsection 71(1) or 78(1) applies may cancel the purchase
of the security in the circumstances prescribed by regulation.
48 The
heading “Disclosure of material change” preceding section
89 of the Act is repealed and the following is substituted:
Continuous Disclosure
49 Section
89 of the Act is repealed and the following is substituted:
89(1) A reporting issuer shall, in accordance
with the regulations,
(a) provide such periodic disclosure as is prescribed by
regulation about its business and affairs,
(b) provide disclosure of a material change, and
(c) provide such other disclosure as is prescribed by regulation.
89(2) An issuer that is not a reporting issuer shall disclose, in accordance
with the regulations, information prescribed by regulation.
50 The
heading “Interim financial statements and comparative financial
statements” preceding section 90 of the Act is repealed.
51 Section 90 of the Act is repealed.
52 The heading “Delivery of financial
statements to security holders” preceding section 91 of the
Act is repealed.
53 Section
91 of the Act is repealed.
54 Section
92 of the Act is amended by adding after subsection (2) the following:
92(3) An order under subsection (1) may be
retroactive in its operation.
55 The
heading “Filing of information circular” preceding section
93 of the Act is repealed.
56 Section
93 of the Act is repealed.
57 The
heading “Filing of documents filed in another jurisdiction”
preceding section 94 of the Act is repealed.
58 Section
94 of the Act is repealed.
59 The
heading “Order relieving reporting issuer” preceding section
95 of the Act is repealed.
60 Section
95 of the Act is repealed.
61 The
heading “Deeming an issuer to be a reporting issuer” preceding
section 96 of the Act is repealed.
62 Section
96 of the Act is repealed.
63 The
heading “Certificate regarding reporting issuer” preceding
section 97 of the Act is repealed and the following is substituted:
List of defaulting reporting issuers
64 Section
97 of the Act is repealed and the following is substituted:
97 The Commission may publish a list of reporting
issuers that are in default.
65 The
heading “Definition of “solicitation”” preceding
section 98 of the Act is repealed.
66 Section
98 of the Act is repealed.
67 The
heading “Mandatory solicitation of proxies” preceding
section 100 of the Act is repealed.
68 Section
100 of the Act is repealed.
69 The
heading “Information circular” preceding section 101 of
the Act is repealed.
70 Section
101 of the Act is repealed.
71 The
heading “Compliance with laws of another jurisdiction”
preceding section 104 of the Act is repealed.
72 Section
104 of the Act is repealed.
73 Section
105 of the Act is amended by adding after subsection (2) the following:
105(3) An order under subsection (1) may be
retroactive in its operation.
74 The
heading “Definitions and interpretation” preceding section
106 of the Act is repealed and the following is substituted:
Definitions
75 Section
106 of the Act is repealed and the following is substituted:
106 The following definitions apply in this
Part.
“interested person” means (personne intéressée)
(a) an issuer whose securities
are the subject of a take-over bid, issuer bid or offer to acquire,
(b) a security holder, director or officer of an issuer
referred to in paragraph (a),
(c) an offeror,
(d) the Executive Director,
and
(e) any person not referred to in paragraphs (a) to (d) who, in the opinion of the Commission or the Court of Queen’s
Bench, as the case may be, is a proper person to make an application
under section 129 or 130, as the case may be.
“issuer bid” means a direct
or indirect offer to acquire or redeem a security or a direct or indirect
acquisition or redemption of a security that is (offre de l’émetteur)
(a) made by the issuer
of the security, and
(b) within a class of
offers, acquisitions or redemptions that is prescribed by regulation.
“take-over bid” means
a direct or indirect offer to acquire a security that is (offre d’achat visant à la mainmise)
(a) made by a person other than the issuer of the security,
and
(b) within a class of offers to acquire that is prescribed
by regulation.
76 The
heading “Computation of time and expiry of bid” preceding
section 107 of the Act is repealed.
77 Section
107 of the Act is repealed.
78 The
heading “Convertible securities” preceding section 108
of the Act is repealed.
79 Section
108 of the Act is repealed.
80 The
heading “Deemed beneficial ownership” preceding section
109 of the Act is repealed.
81 Section
109 of the Act is repealed.
82 The
heading “Acting jointly or in concert” preceding section
110 of the Act is repealed.
83 Section
110 of the Act is repealed.
84 The
heading “Application to direct and indirect offers” preceding
section 111 of the Act is repealed.
85 Section
111 of the Act is repealed.
86 The
heading “Exempt take-over bids” preceding section 112
of the Act is repealed and the following is substituted:
Making a bid
87 Section
112 of the Act is repealed and the following is substituted:
112 A person shall not make a take-over bid
or an issuer bid, whether alone or acting jointly or in concert with
one or more persons, except in accordance with the regulations.
88 The
heading “Exempt issuer bids” preceding section 113 of
the Act is repealed.
89 Section
113 of the Act is repealed.
90 The
heading “Exchange requirements” preceding section 114
of the Act is repealed.
91 Section
114 of the Act is repealed.
92 The
heading “Definition of “offeror”” preceding
section 115 of the Act is repealed.
93 Section
115 of the Act is repealed.
94 The
heading “Restrictions on acquisitions during take-over bids”
preceding section 116 of the Act is repealed.
95 Section
116 of the Act is repealed.
96 The
heading “Restrictions on acquisitions during issuer bids”
preceding section 117 of the Act is repealed.
97 Section
117 of the Act is repealed.
98 The
heading “Restrictions on pre-bid and post-bid acquisitions”
preceding section 118 of the Act is repealed.
99 Section
118 of the Act is repealed.
100 The heading “Sales during bid prohibited” preceding section
119 of the Act is repealed.
101 Section 119 of the Act is repealed.
102 The heading “General provisions” preceding section 120
of the Act is repealed.
103 Section 120 of the Act is repealed.
104 The heading “Financing of bid” preceding section 121
of the Act is repealed.
105 Section 121 of the Act is repealed.
106 The heading “Consideration” preceding section 122 of
the Act is repealed.
107 Section 122 of the Act is repealed.
108 The heading “Offeror’s circular” preceding section
123 of the Act is repealed.
109 Section 123 of the Act is repealed.
110 The heading “Directors’ circular” preceding section
124 of the Act is repealed and the following is substituted:
Directors’ or individual director’s
or officer’s recommendation
111 Section 124 of the Act is repealed and the following is substituted:
124(1) When a take-over bid has been made,
the directors of the issuer whose securities are the subject of the
take-over bid shall
(a) determine whether to recommend acceptance or rejection
of the take-over bid or determine not to make a recommendation, and
(b) make the recommendation, or a statement that
they are not making a recommendation, in accordance with the regulations.
124(2) An individual director or officer of the issuer whose securities
are the subject of a take-over bid may recommend acceptance or rejection
of the take-over bid if the recommendation is made in accordance with
the regulations.
112 The heading “Commencement of bid” preceding section 125
of the Act is repealed.
113 Section 125 of the Act is repealed.
114 The heading “Reports on acquisitions” preceding section
126 of the Act is repealed and the following is substituted:
Early warning
115 Section 126 of the Act is repealed and the following is substituted:
126 If a person acquires directly or indirectly
beneficial ownership of, or control or direction over, securities
of a reporting issuer that are of a type or class of securities that
is prescribed by regulation and, as a result, the person and any other
person acting jointly or in concert with the person, hold securities
representing a percentage prescribed by regulation of the outstanding
securities of the reporting issuer of that type or class, the person
and any person acting jointly or in concert with the person shall
(a) provide such disclosure as is prescribed by
regulation, and
(b) comply with any prohibitions in the regulations on transactions
in securities of the reporting issuer.
116 The heading “News releases” preceding section 127 of
the Act is repealed.
117 Section 127 of the Act is repealed.
118 The heading “Duplicate reports not required” preceding
section 128 of the Act is repealed.
119 Section 128 of the Act is repealed.
120 Section 129 of the Act is amended
(a) by repealing subsection
(1) and substituting the following:
129(1) Where the Commission is of the opinion that a person has not
complied with or is not complying with this Part or the regulations
relating to this Part, the Commission may, subject to such terms and
conditions as it considers appropriate, make an order
(a) restraining the distribution of any document or any
communication used or issued in connection with a take-over bid or
issuer bid,
(b) requiring an amendment to or variation of any document
or any communication used or issued in connection with a take-over
bid or issuer bid and requiring the distribution of any amended, varied
or corrected document or communication, and
(c) directing any person to comply with this Part or the
regulations relating to this Part or restraining any person from contravening
this Part or the regulations relating to this Part and directing the
directors and officers of the person to cause the person to comply
with or to cease contravening this Part or the regulations relating
to this Part.
(b) by repealing subsection
(2) and substituting the following:
129(2) Where the Commission is of the opinion that to do so would not
be prejudicial to the public interest, the Commission may, subject
to such terms and conditions as it considers appropriate, make an
order exempting, in whole or in part, a person or class of persons
from any of the requirements of this Part or the regulations relating
to this Part.
(c) in subsection (4) by
striking out “paragraph (2)(c)” and substituting “subsection (2)”.
121 Subsection 130(2) of the Act is amended
(a) in the portion preceding
paragraph (a) by striking out “may make an interim or final
order” and substituting “may make such order at it thinks
fit, including, without limiting the generality of the foregoing,
an order”;
(b) in paragraph (d) of
the English version by adding “and” at the end of the paragraph;
(c) in paragraph (e) by striking out “,
and” at the end of the paragraph and substituting a period;
(d) by repealing paragraph
(f).
122 The heading “Definitions” preceding
section 131 of the Act is repealed.
123 Section 131 of the Act is repealed.
124 The heading “Definition of “investment””
preceding section 132 of the Act is repealed.
125 Section 132 of the Act is repealed.
126 The heading “Significant interest, substantial security holder
and beneficial ownership” preceding section 133 of the Act is
repealed.
127 Section 133 of the Act is repealed.
128 The heading “Related person and change in beneficial ownership”
preceding section 134 of the Act is repealed.
129 Section 134 of the Act is repealed.
130 The heading “Insider report” preceding section 135 of
the Act is repealed and the following is substituted
Insider reporting
131 Section 135 of the Act is repealed and the following is substituted:
135 Unless exempted under the regulations,
an insider of a reporting issuer shall provide such disclosure as
is prescribed by regulation.
132 The heading “Report of transfer by insider” preceding
section 136 of the Act is repealed.
133 Section 136 of the Act is repealed.
134 The heading “Investments of mutual funds in New Brunswick”
preceding section 137 of the Act is repealed.
135 Section 137 of the Act is repealed.
136 The heading “Indirect investment” preceding section 138
of the Act is repealed.
137 Section 138 of the Act is repealed.
138 The heading “Order for non-application of section 137 or 138”
preceding section 139 of the Act is repealed.
139 Section 139 of the Act is repealed.
140 The heading “Exception to paragraph 133(c)” preceding
section 140 of the Act is repealed.
141 Section 140 of the Act is repealed.
142 The heading “Fees on investment” preceding section 141
of the Act is repealed.
143 Section 141 of the Act is repealed.
144 The heading “Standard of care for management of mutual fund”
preceding section 142 of the Act is repealed and the following is
substituted:
Standard of care for management
of investment fund
145 Section 142 of the Act is repealed and the following is substituted:
142 Every investment fund manager shall
(a) exercise the powers and discharge the duties
of its office honestly, in good faith and in the best interests of
the investment fund, and
(b) exercise the degree of care, diligence and skill that
a reasonably prudent person would exercise in the circumstances.
146 The heading “Filing by mutual fund managers” preceding
section 143 of the Act is repealed.
147 Section 143 of the Act is repealed.
148 The heading “Prohibited transactions” preceding section
144 of the Act is repealed.
149 Section 144 of the Act is repealed.
150 The heading “Trades by mutual fund insiders” preceding
section 145 of the Act is repealed.
151 Section 145 of the Act is repealed.
152 The heading “Filing of reports in another jurisdiction”
preceding section 146 of the Act is repealed.
153 Section 146 of the Act is repealed.
154 The heading “Prohibited trading” preceding section 147
of the Act is repealed and the following is substituted:
Insider trading, informing and recommending
prohibited
155 Section 147 of the Act is amended
(a) by repealing subsection
(1) and substituting the following:
147(1) The following definitions apply in this section.
“issuer” means (émetteur)
(a) a reporting issuer,
or
(b) any other issuer whose securities are publicly traded.
“person in a special relationship
with an issuer” means (personne ayant des rapports particuliers
avec un émetteur)
(a) a person who is an
insider, affiliate or associate of
(i) the
issuer,
(ii) a person who is proposing
to make a take-over bid, as defined in section 106, for the securities of the issuer, or
(iii) a person who is proposing to become a party to a reorganization,
amalgamation, merger or arrangement or similar business combination
with the issuer or to acquire a substantial portion of its property,
(b) a person who is engaging in or proposes to engage in
any business or professional activity with or on behalf of the issuer
or with or on behalf of a person described in subparagraph (a)(ii) or (iii),
(c) a person who
is a director, officer or employee of the issuer or of a person described
in subparagraph (a)(ii) or
(iii) or paragraph (b),
(d) a person who learned of a material fact or material
change with respect to the issuer while the person was a person described
in paragraph (a), (b) or (c), or
(e) a person who learns of a material fact or material
change with respect to the issuer from any other person described
in this subsection, including a person described in this paragraph,
and knows or ought reasonably to have known that the other person
is a person in such a relationship.
(b) by repealing subsection
(2) and substituting the following:
147(2) No person in a special relationship with an issuer, shall, with
knowledge of a material fact or material change with respect to the
issuer that has not been generally disclosed,
(a) subscribe to, purchase or trade in the securities of
the issuer,
(b) acquire, dispose of, or exercise a put or call option
or other right or obligation to purchase or trade in the securities
of the issuer,
(c) enter into a related financial instrument or acquire
or dispose of rights or obligations under a related financial instrument,
or
(d) change the person’s
(i) direct or indirect beneficial ownership
of, or control or direction over,
(A) securities of the issuer, or
(B) a put or call option or other
right or obligation to purchase or trade in the securities of the
issuer, or
(ii) interest in, or rights or obligations
associated with, a related financial instrument.
(c) by repealing subsection
(3);
(d) by repealing subsection
(4) and substituting the following:
147(4) No issuer and no person in a special relationship with an issuer
shall inform, other than in the necessary course of business, another
person of a material fact or material change with respect to the issuer
before the material fact or material change has been generally disclosed.
(e) by adding after subsection (4) the following:
147(4.1) No issuer and no person in a special
relationship with an issuer with knowledge of a material fact or material
change with respect to the issuer that has not been generally disclosed
shall recommend or encourage another person to
(a) subscribe to, purchase or trade in the securities of
the issuer,
(b) acquire, dispose of, or exercise a put or call option
or other right or obligation to purchase or trade in the securities
of the issuer,
(c) enter into a related financial instrument or acquire
or dispose of rights or obligations under a related financial instrument,
or
(d) change the person’s
(i) direct or indirect beneficial ownership
of, or control or direction over,
(A) securities of the issuer, or
(B) a put or call option or other
right or obligation to purchase or trade in the securities of the
issuer, or
(ii) interest in, or rights or obligations
associated with, a related financial instrument.
(f) by repealing subsection
(5) and substituting the following:
147(5) No person who proposes to make a take-over bid, as defined in
section 106, for the securities
of an issuer, to become a party to a reorganization, amalgamation,
merger, arrangement or similar business combination with an issuer
or to acquire a substantial portion of the property of an issuer shall
inform another person of a material fact or material change with respect
to the issuer before the material fact or material change has been
generally disclosed unless the information is given in the necessary
course of business to effect the take-over bid, business combination
or acquisition, as the case may be.
(g) by repealing subsection
(6).
156 The Act is amended by adding after section
147 the following:
Defences for insider trading, informing
and recommending
147.1(1) No person shall be found to have contravened subsection 147(2) if the person proves that at the
time of the transaction described in that subsection the person reasonably
believed that the other party to the transaction had knowledge of
the material fact or material change.
147.1(2) No person shall be found to have contravened subsection 147(4), (4.1) or (5) if the person proves
that at the time of the giving of the information described in subsection 147(4) or (5) or at the time of the making
of the recommendation or giving of the encouragement described in
subsection 147(4.1), as the case
may be, the person reasonably believed that the person informed of
the material fact or material change or the person who received the
recommendation or encouragement had knowledge of the material fact
or material change.
147.1(3) No person, other than an individual, that enters into a transaction
described in subsection 147(2) with
knowledge of a material fact or material change with respect to an
issuer that has not been generally disclosed shall be found to have
contravened that subsection if the person proves that
(a) the person had knowledge of the material fact or material
change only because the material fact or material change was known
to one or more of the person’s directors, officers, partners,
employees or agents,
(b) the decision to enter into the transaction was made
by one or more of the person’s directors, officers, partners,
employees or agents and none of the individuals who participated in
the decision had actual knowledge of the material fact or material
change, and
(c) none of the person’s directors, officers, partners,
employees or agents that had actual knowledge of the material fact
or material change gave any advice related to the transaction based
on the actual knowledge to the person’s directors, officers,
partners, employees or agents that made or participated in the decision
to enter into the transaction.
147.1(4) In determining if a person has established a defence under subsection
(2), it will be relevant whether and to what extent the person has
implemented and maintained reasonable policies and procedures to prevent
contraventions of subsection 147(2).
147.1(5) No person who enters into a transaction
described in subsection 147(2) with
knowledge of a material fact or material change with respect to an
issuer that has not been generally disclosed shall be found to have
contravened that subsection if the person proves that
(a) the person entered into the transaction because of the
person’s participation in a written automatic dividend reinvestment
plan or a written automatic purchase plan or another similar written
automatic plan that the person entered into before having knowledge
of the material fact or material change,
(b) the person entered into the transaction as a result
of a written legal obligation to do so and that obligation was incurred
before the person acquired knowledge of the material fact or material
change, or
(c) the person entered into the transaction
(i) as agent for another person under
specific unsolicited instructions given by that other person to enter
into the specified transaction,
(ii) as agent for another person under
specific solicited instructions given by that other person to enter
into the specified transaction before the person who acted as agent
had knowledge of the material fact or material change,
(iii) as agent or trustee for another
person because of that other person’s participation in a written
automatic dividend reinvestment plan or a written automatic purchase
plan or another similar written automatic plan, or
(iv) as agent or trustee for another person
to fulfil in whole or in part a written legal obligation of that other
person.
Front running
147.2(1) In this section and section 147.3, “material order information” means information that
relates to any of the following and that, if disclosed, would reasonably
be expected to affect the market price of the security:
(a) the intention of a person responsible for making decisions
about an investment portfolio to trade a security on behalf of the
investment portfolio;
(b) the intention of a registrant trading in securities
on behalf of an investment portfolio to trade a security on behalf
of the investment portfolio; or
(c) an unexecuted order, or the intention of any person
to place an order, to trade a security.
147.2(2) A person with knowledge of material order information shall not,
and shall not recommend or encourage another person to,
(a) subscribe to, purchase or trade in the securities to
which the material order information relates,
(b) acquire, dispose of, or exercise a put or call option
or other right or obligation to purchase or trade in the securities,
(c) enter into a related financial instrument or
acquire or dispose of rights or obligations under a related financial
instrument, or
(d) change the person’s
(i) direct or indirect beneficial ownership
of, or control or direction over,
(A) the securities, or
(B) a put or call option or other
right or obligation to purchase or trade in the securities, or
(ii) interest in, or rights or
obligations associated with, a related financial instrument.
147.2(3) No person with knowledge of material order information shall
inform another person of the material order information unless it
is necessary in the course of the person’s business.
Defences for front running
147.3(1) No person shall be found to have contravened subsection 147.2(2) if the person proves that at
the time of the transaction described in that subsection or at the
time of the making of the recommendation or giving of the encouragement
described in that subsection, as the case may be, the person reasonably
believed that the other party to the transaction or the person who
received the recommendation or encouragement had knowledge of the
material order information.
147.3(2) No person shall be found to have contravened subsection 147.2(3) if the person proves that at
the time of the giving of the information described in that subsection
the person reasonably believed that the person informed of the material
order information had knowledge of the material order information.
147.3(3) No person, other than an individual, that takes an action described
in subsection 147.2(2) or (3) with
knowledge of material order information shall be found to have contravened
that subsection if the person proves that
(a) the person had knowledge of the material order information
only because the material order information was known to one or more
of the person’s directors, officers, partners, employees or
agents,
(b) the decision to act was made by one or more of the person’s
directors, officers, partners, employees or agents and none of the
individuals who participated in the decision had actual knowledge
of the material order information, and
(c) none of the person’s directors, officers, partners,
employees or agents that had actual knowledge of the material order
information gave any advice related to the action based on the actual
knowledge to the person’s directors, officers, partners, employees
or agents that made or participated in the decision to act.
147.3(4) In determining if a person has established a defence under subsection
(2), it will be relevant whether and to what extent the person has
implemented and maintained reasonable policies and procedures to prevent
contraventions of subsections 147.2(2) and (3).
147.3(5) No person who takes an action described in subsection 147.2(2) or (3) with knowledge of material
order information shall be found to have contravened that subsection
if the person proves that
(a) the person acted because of the person’s participation
in a written automatic dividend reinvestment plan or a written automatic
purchase plan or another similar written automatic plan that the person
entered into before having knowledge of the material order information,
(b) the person acted under a written legal obligation
to take the action and that obligation was incurred before the person
acquired knowledge of the material order information, or
(c) the person acted
(i) as agent for another person under
specific unsolicited instructions given by that other person to take
the specified action,
(ii) as agent for another person under
specific solicited instructions given by that other person to take
the specified action before the person who acted as agent had knowledge
of the material order information,
(iii) as agent or trustee for another
person because of that other person’s participation in a written
automatic dividend reinvestment plan or a written automatic purchase
plan or another similar written automatic plan, or
(iv) as agent or trustee for another person
to fulfil in whole or in part a written legal obligation of that other
person.
157 Section 148 of the Act is amended
(a) by repealing subsection
(2);
(b) in subsection (3) by
striking out “or (2)”;
(c) by adding after subsection
(3) the following:
148(4) An order under subsection (1) may be retroactive in its operation.
158 The Act is amended by adding after section 148 the following:
PART 10.1
GOVERNANCE AND OTHER REQUIREMENTS
Governance of reporting issuers
148.1(1) In this section, “person in a special relationship with
a reporting issuer” means
(a) a person who is an insider, affiliate or associate of
(i) the reporting issuer,
(ii) a person who is proposing
to make a take-over bid, as defined in section 106, for the securities of the reporting issuer, or
(iii) a person who is proposing
to become a party to a reorganization, amalgamation, merger or arrangement
or similar business combination with the reporting issuer or to acquire
a substantial portion of its property,
(b) a person who is engaging in or proposes to engage in
any business or professional activity with or on behalf of the reporting
issuer or with or on behalf of a person described in subparagraph
(a)(ii) or (iii),
(c) a person who is a director, officer or employee of the
reporting issuer or of a person described in subparagraph (a)(ii) or (iii) or paragraph (b),
(d) a person who learned of a material fact or material
change with respect to the reporting issuer while the person was a
person described in paragraph (a), (b) or (c), or
(e) a person who learns of a material fact or material change
with respect to the reporting issuer from any other person described
in this subsection, including a person described in this paragraph,
and knows or ought reasonably to have known that the other person
is a person in such a relationship.
148.1(2) For the purposes of this Act, a reporting issuer shall comply
with such requirements as are prescribed by regulation with respect
to the governance of reporting issuers, including requirements relating
to
(a) the composition of its board of directors and qualifications
for membership on the board, including matters respecting the independence
of members,
(b) the establishment of specified types of committees of
the board of directors, the mandate, functioning and responsibilities
of each committee, the composition of each committee and the qualifications
for membership on the committee, including matters respecting the
independence of members,
(c) the establishment and enforcement of a code of business
conduct and ethics applicable to its directors, officers and employees
and applicable to persons in a special relationship with the reporting
issuer, including the minimum requirements for such a code, and
(d) procedures to regulate conflicts of interest
between the interests of the reporting issuer and those of a director
or officer of the issuer.
Oversight of investment funds
148.2(1) If required to do so by the regulations, an investment fund shall
establish and maintain a body for the purposes of overseeing activities
of the investment fund and the investment fund manager, reviewing
or approving matters prescribed by regulation affecting the investment
fund and disclosing information to security holders of the fund, to
the investment fund manager and to the Commission.
148.2(2) The body has the powers and duties prescribed by regulation.
159 Section 149 of the Act is amended
(a) in subsection (1)
(i) by repealing paragraph
(b) and substituting the following:
(b) every underwriter that is in a contractual relationship
with the issuer or selling security holder on whose behalf the distribution
is made,
(ii) in paragraph
(d) by striking out “consent has been filed as required by the
regulations” and substituting “consent to disclosure of information
in the prospectus has been filed”;
(b) in subsection (3) of
the French version by striking out “n’est responsable”
and substituting “ne
peut être tenue responsable”;
(c) in subsection (4) of
the French version
(i) in the portion
preceding paragraph a) by striking out “n’est responsable”
and substituting “ne
peut être tenue responsable”;
(ii) in paragraph
c) by striking out “sous l’autorité d’un expert”
and substituting “sur
l’autorité d’un expert”;
(iii) in paragraph
d) by striking out “sous son autorité” and substituting “sur son autorité”;
(d) in subsection (5) of
the French version in the portion preceding paragraph a) by striking
out “n’est responsable” and substituting “ne peut être
tenue responsable”;
(e) in subsection (6) of
the French version by striking out the portion preceding paragraph
a) and substituting the following:
149(6) Une personne, à l’exclusion de l’émetteur
ou du détenteur qui a vendu les valeurs mobilières, ne peut être
tenue responsable aux termes du paragraphe (1) ou (2) à l’égard
d’une partie du prospectus ou de sa modification qui n’est
pas présentée comme étant préparée sur l’autorité
d’un expert ni comme étant une copie ou un extrait d’un
rapport, d’une opinion ou d’une déclaration d’un
expert que dans les cas suivants :
(f) in subsection (7) of
the French version by striking out “n’est responsable”
and substituting “ne
peut être tenu responsable”;
(g) in subsection (8) of
the French version by striking out “n’est pas responsable”
and substituting “ne
peut être tenu responsable”.
160 Section 150 of the Act is amended
(a) in subsection (1) in
the portion preceding paragraph (a) by striking out “and where
any information relating to an offering provided to the purchaser
of the securities contains a misrepresentation” and substituting “and where an offering
memorandum provided to the purchaser of the securities contains a
misrepresentation”;
(b) in subsection (2) of
the French version by striking out “n’est responsable”
and substituting “ne
peut être tenue responsable”;
(c) in subsection (3) of
the French version by striking out “n’est pas responsable”
and substituting “ne
peut être tenu responsable”.
161 Section 151 of the Act is amended
(a) by repealing paragraph
(1)(b) and substituting the following:
(b) where a prospectus is used in connection with the trade,
every underwriter that is in a contractual relationship with the issuer
or selling security holder on whose behalf the distribution is made,
(b) in subsection (4) of the French version
by striking out “n’est pas responsable” and substituting “ne peut être
tenue responsable”;
(c) in subsection (5) of
the French version in the portion preceding paragraph a) by striking
out “n’est pas responsable” and substituting “ne peut être
tenue responsable”;
(d) in subsection (6) of
the French version in the portion preceding paragraph a) by striking
out “n’est responsable” and substituting “ne peut être
tenue responsable”;
(e) in subsection (7) of
the French version by striking out the portion preceding paragraph
a) and substituting the following:
151(7) Une personne, à l’exclusion de l’émetteur
ou du détenteur qui a vendu les valeurs mobilières, ne peut être
tenue responsable aux termes du paragraphe (1) ou (3) à l’égard
d’une partie d’une annonce publicitaire ou d’une
documentation commerciale qui n’est pas présentée
comme étant préparée sur l’autorité d’un
expert ni comme étant une copie ou un extrait d’un rapport,
d’une opinion ou d’une déclaration d’un expert
que dans les cas suivants :
(f) in subsection (8) of
the French version by striking out “n’est pas responsable”
and substituting “ne
peut être tenue responsable”;
(g) in subsection (9) of
the French version by striking out “n’est responsable”
and substituting “ne
peut être tenu responsable”;
(h) in subsection (10)
of the French version by striking out “n’est pas responsable”
and substituting “ne
peut être tenu responsable”.
162 Section 152 of the French version of the Act is amended
(a) in subsection (2) by striking out “n’est
pas responsable” and substituting “ne peut être tenue responsable”;
(b) in subsection (3) by
striking out “n’est pas responsable” and substituting “ne peut être
tenue responsable”;
(c) in subsection (4) by
striking out “n’est pas responsable” and substituting “ne peut être
tenue responsable”;
(d) in subsection (6) by
striking out “n’est pas responsable” and substituting “ne peut être
tenu responsable”.
163 Section 153 of the Act is amended
(a) in subsection (1) in
the portion preceding paragraph (a) by striking out “Where a
take-over bid circular delivered to the security holders of an offeree
issuer as required by Part 9 or any notice of change or variation
in respect of a take-over bid circular contains a misrepresentation,
every such security holder” and substituting “Where a take-over bid circular or
any notice of change or variation in respect of a take-over bid circular
is required to be sent under the regulations and that document contains
a misrepresentation, a person to whom the circular or notice was sent”;
(b) in subsection (2) by
striking out “Where a directors’ circular or an individual
director’s or officer’s circular delivered to the security
holders of an offeree issuer as required by Part 9 or any notice of
change or variation in respect of such circular contains a misrepresentation,
every such security holder” and substituting “Where a directors’ circular
or an individual director’s or officer’s circular or any
notice of change or variation in respect of such circular is required
to be sent under the regulations and that document contains a misrepresentation,
a person to whom the circular or notice was sent”;
(c) in subsection (4) of
the French version by striking out “n’est pas responsable”
and substituting “ne
peut être tenue responsable”;
(d) in subsection (5)
(i) in the portion
preceding paragraph a) of the French version by striking out “n’est
pas responsable” and substituting “ne peut être tenue responsable”;
(ii) by repealing
paragraph (a) and substituting the following:
(a) that the take-over bid circular, issuer bid circular,
directors’ circular or individual director’s or officer’s
circular, as the case may be, or any notice of change or variation
in respect of such circular was sent without the person’s knowledge
or consent and that, on becoming aware of it, the person gave reasonable
general notice that it was so sent,
(iii) by repealing
paragraph (b) and substituting the following:
(b) that, after the sending of the take-over bid circular,
issuer bid circular, directors’ circular or individual director’s
or officer’s circular, as the case may be, or any notice of
change or variation in respect of such circular, on becoming aware
of any misrepresentation in the take-over bid circular, issuer bid
circular, directors’ circular, individual director’s or
officer’s circular or notice of change or variation, the person
withdrew the person’s consent to it and gave reasonable general
notice of the withdrawal and the reason for the withdrawal,
(iv)
in paragraph c) of the French version by striking out “étant
préparée par un expert” and substituting “étant préparée sur
l’autorité d’un expert”;
(e) in subsection (6) of
the French version by striking out “n’est responsable”
and substituting “ne
peut être tenue responsable”;
(f) in subsection (7) of
the French version by striking out the portion preceding paragraph
a) and substituting the following:
153(7) Une personne, à l’exclusion du pollicitant, ne peut être
tenue responsable aux termes du paragraphe (1), (2) ou (3) à
l’égard d’une partie de la circulaire qui n’est
pas présentée comme étant préparée sur l’autorité
d’un expert ni comme étant une copie ou un extrait d’un
rapport, d’une opinion ou d’une déclaration d’un
expert que dans les cas suivants :
(g) in subsection (9) of
the French version by striking out “n’est pas responsable”
and substituting “ne
peut être tenu responsable”;
(h) by repealing subsection
(10).
164 The Act is amended by adding after section 153 the following:
Liability for misrepresentation
in disclosure document prescribed by regulation
153.1(1) If a disclosure document prescribed by regulation contains a
misrepresentation, a purchaser who purchases securities offered by
the disclosure document shall be deemed to have relied on the misrepresentation
if it was a misrepresentation at the time of purchase and has a right
of action for damages against
(a) the issuer,
(b) every director of the issuer at the date of the disclosure
document, and
(c) every person who signed the disclosure document.
153.1(2) The purchaser may elect to exercise a right of rescission against
the issuer, in which case the purchaser has no right of action for
damages against the issuer.
153.1(3) No person is liable under subsection (1) if the person proves
that the purchaser purchased the securities with knowledge of the
misrepresentation.
153.1(4) No person is liable under subsection (1) if the person proves
(a) that the disclosure document was delivered to
purchasers without the person’s knowledge or consent and that,
on becoming aware of its delivery, the person gave written notice
to the issuer that it was delivered without the person’s knowledge
or consent,
(b) that, on becoming aware of any misrepresentation in
the disclosure document, the person withdrew the person’s consent
to the disclosure document and gave written notice to the issuer of
the withdrawal and the reason for the withdrawal, or
(c) that, with respect to any part of the disclosure document
purporting to be made on the authority of an expert or purporting
to be a copy of, or an extract from, a report, opinion or statement
of an expert, the person had no reasonable grounds to believe and
did not believe that there had been a misrepresentation or that the
part of the disclosure document did not fairly represent the report,
opinion or statement of the expert or was not a fair copy of, or extract
from, the report, opinion or statement of the expert.
153.1(5) No person is liable under subsection (1) with respect to any
part of a disclosure document not purporting to be made on the authority
of an expert and not purporting to be a copy of, or an extract from,
a report, opinion or statement of an expert unless the person
(a) failed to conduct such reasonable investigation
as to provide reasonable grounds for a belief that there had been
no misrepresentation, or
(b) believed that there had been a misrepresentation.
153.1(6) Subsections (4) and (5) do not apply to the issuer.
153.1(7) In an action for damages under subsection (1), the defendant
is not liable for all or any portion of the damages that the defendant
proves do not represent the depreciation in value of the securities
as result of the misrepresentation relied on.
153.1(8) All or any one or more of the persons referred to in subsection
(1) are jointly and severally liable, and every person who becomes
liable to make any payment under this section may recover a contribution
from any person who, if sued separately, would have been liable to
make the same payment unless the court rules that, in all the circumstances
of the case, to permit recovery of the contribution would not be just
and equitable.
153.1(9) In no case shall the amount recoverable under this section exceed
the price at which the securities were offered to the public.
153.1(10) The right of action for rescission or damages conferred by this
section is in addition to and without derogation from any other right
the purchaser may have at law.
153.1(11) If a misrepresentation is contained in a document incorporated
by reference in, or deemed incorporated into, a disclosure document,
the misrepresentation shall be deemed to be contained in the disclosure
document.
165 Section 154 of the Act is amended by striking
out “sections 149, 151 and 153” and substituting “sections 149, 151, 153 and 153.1”.
166 The Act is amended by adding after section
154 the following:
Defence to liability for misrepresentation
154.1(1) A person is not liable in an action under section 149, 150, 153 or 153.1 for a misrepresentation in forward-looking information
if the person proves all of the following:
(a) that the document containing the forward-looking information
contained, proximate to that information,
(i) reasonable cautionary language identifying
the forward-looking information as such, and identifying material
factors that could cause actual results to differ materially from
a conclusion, forecast or projection in the forward-looking information,
and
(ii) a statement of the material factors
or assumptions that were applied in drawing a conclusion or making
a forecast or projection set out in the forward-looking information,
and
(b) that the person had a reasonable basis for drawing the
conclusions or making the forecasts and projections set out in the
forward-looking information.
154.1(2) Subsection (1) does not relieve a person of liability respecting
forward-looking information in a financial statement or in a document
released in connection with an initial public offering.
167 Section 155 of the Act is repealed and the following is substituted:
155 A purchaser of a security in respect of
which a prospectus or an amendment to a prospectus was required to
be filed but was not filed in compliance with this Act or the regulations,
a purchaser of a security to whom a prospectus or an amendment to
a prospectus was required to be delivered but was not delivered in
compliance with this Act or the regulations, a purchaser of a security
to whom an offering memorandum or an amendment to an offering memorandum
was required to be sent but was not sent in compliance with the regulations
or a security holder to whom a take-over bid and take-over bid circular
or an issuer bid and an issuer bid circular, or any notice of change
or variation to any such bid or circular, were required to be sent
but were not sent in compliance with this Act or the regulations has
a right of action for rescission or damages against the dealer or
offeror who failed to comply with the applicable requirement.
168 The heading “Liability where material fact or material change
undisclosed” preceding section 157 of the Act is repealed and
the following is substituted:
Liability for insider trading, informing and recommending and for
front running
169 Section 157 of the Act is amended
(a) by repealing subsection
(1) and substituting the following:
157(1) The following definitions apply in this section.
“issuer” means an issuer as
defined in subsection 147(1). (émetteur)
“material order information”
means material order information as defined in subsection 147.2(1). (renseignement sur un ordre
important)
“person in a special relationship
with an issuer” means a “person in a special relationship
with an issuer” as defined in subsection 147(1). (personne ayant des rapports particuliers
avec un émetteur)
(b) by repealing subsection
(2) and substituting the following:
157(2) Every person in a special relationship with an issuer who contravenes
subsection 147(2) is liable to compensate
the other party to the transaction described in that subsection for
damages as a result of the transaction unless the person in the special
relationship with the issuer proves
(a) that the person reasonably believed that the material
fact or material change had been generally disclosed, or
(b) that the material fact or material change was known
or ought reasonably to have been known to the other party to the transaction.
(c) in subsection (3)
(i) by repealing paragraph
(a) and substituting the following:
(a) issuer,
(ii) in paragraph
(b) by striking out “a reporting issuer” and substituting “an issuer”;
(iii) in paragraph
(c) by striking out “a reporting issuer” wherever it appears
and substituting “an
issuer”;
(iv)
in the portion following paragraph (c) by striking out “reporting
issuer” wherever it appears and substituting “issuer”;
(d) by repealing paragraph
(4)(c) and substituting the following:
(c) in the case of an action against an issuer or a person
in a special relationship with the issuer, the information was given
in the necessary course of business, or
(e) by adding after subsection
(4) the following:
157(4.1) Every issuer and every person in a special relationship with
an issuer who contravenes subsection 147(4.1) is liable to compensate the person who received the recommendation
or encouragement described in that subsection for damages as a result
of the recommendation or encouragement unless the person who made
the recommendation or gave the encouragement proves
(a) that, at the time of the making of the recommendation
or giving of the encouragement described in subsection 147(4.1), the person who recommended or
encouraged reasonably believed the material fact or material change
had been generally disclosed, or
(b) that the material fact or material change was, at the
time of the making of the recommendation or giving of the encouragement,
known or ought reasonably to have been known to the person who received
the recommendation or encouragement described in subsection 147(4.1).
157(4.2) A person who knows of material order information and contravenes
subsection 147.2(2) or (3) is liable
to account to the person to whom the material order information relates
for any benefit or advantage received or receivable by the first person
by reason of the contravention.
(f) by repealing subsection
(6) and substituting the following:
157(6) Every person who is an insider, affiliate or associate of an
issuer who
(a) enters into a transaction described in subsection 147(2) with knowledge of a material fact
or material change with respect to the issuer that has not been generally
disclosed,
(b) informs another person, other than in the necessary
course of business, of a material fact or material change with respect
to the issuer that has not been generally disclosed, or
(c) with knowledge of a material fact or material change
with respect to the issuer that has not been generally disclosed,
recommends or encourages another person to enter into a transaction
described in subsection 147(4.1),
is accountable to the issuer for any benefit
or advantage received or receivable by the person as a result of the
transaction, information provided, recommendation or encouragement,
as the case may be, unless the person proves that the person reasonably
believed that the material fact or material change had been generally
disclosed.
(g) in subsection (7) by
striking out “person in a special relationship with a reporting
issuer is liable under subsection (2) or (3)” and substituting “person in a special
relationship with an issuer is liable under subsection (2), (3) or
(4.1)”;
(h) in subsection (8) by striking out “subsection
(2) or (3)” and substituting “subsection (2), (3) or (4.1)”;
(i) by repealing subsection
(9) and substituting the following:
157(9) For the purposes of this section, a security of the issuer shall
be deemed to include
(a) a put, call, option or other right or obligation to
purchase or sell securities of the issuer, or
(b) a security, the market price of which varies materially
with the market price of the securities of the issuer.
170 Section 158 of the Act is amended
(a) in subsection (1)
(i) by striking out
the portion preceding paragraph (a) and substituting the following:
158(1) On the application of the Commission or of any person who was
at the time of a transaction referred to in subsection 157(2) or (3) or at the time of the making
of the recommendation or giving of the encouragement referred to in
subsection 157(4.1) or is at the
time of the application a security holder of the issuer, the Court
of Queen’s Bench may make an order, on terms as to security
for costs or otherwise as to the Court of Queen’s Bench seems
proper, requiring the Commission or authorizing the person or the
Commission to commence, commence and prosecute or continue an action
in the name of and on behalf of the issuer to enforce the liability
created by subsection 157(6) if
satisfied
(ii) in paragraph
(a) by striking out “reporting issuer” and substituting “issuer”;
(iii) in paragraph
(b) in the portion preceding subparagraph (i) by striking out “reporting
issuer” and substituting “issuer”;
(b) by repealing subsection
(3) and substituting the following:
158(3) Where an action under subsection 157(5) or (6) is commenced, is commenced and prosecuted or is continued
by a board of directors of an issuer, on motion to the Court of Queen’s
Bench, the Court of Queen’s Bench may order that the costs properly
incurred by the board of directors in commencing, commencing and prosecuting
or continuing the action, as the case may be, shall be paid by the
issuer, if the Court of Queen’s Bench is satisfied that there
were apparent grounds for believing the action was in the best interests
of the issuer and the security holders of the issuer.
(c) in subsection
(4)
(i) in the portion
preceding paragraph (a) by striking out “reporting issuer”
wherever it appears and substituting “issuer”;
(ii) in paragraph
(a) by striking out “reporting issuer” and substituting “issuer”;
(iii) in paragraph
(b) by striking out “reporting issuer” wherever it appears
and substituting “issuer”;
(d) in subsection (5) by
striking out “reporting issuer” and substituting “issuer”;
(e) by repealing subsection
(6) and substituting the following:
158(6) In determining whether there are apparent grounds for believing
that an action or its continuance is in the best interests of an issuer
and the security holders of the issuer, the Court of Queen’s
Bench shall consider the relationship between the potential benefit
to be derived from the action by the issuer and the security holders
of the issuer and the cost involved in the prosecution of the action.
(f) in subsection (7) by striking out “reporting
issuer” and substituting “issuer”;
(g) in subsection (8) by
striking out “reporting issuer” wherever it appears and
substituting “issuer”.
171 The heading “Rescission of purchase of mutual fund security”
preceding section 160 of the Act is repealed.
172 Section 160 of the Act is repealed.
173 The Act is amended by adding after section 161 the following:
PART 11.1
CIVIL LIABILITY FOR
SECONDARY MARKET DISCLOSURE
Division A
Definitions and Application
Definitions
161.1 The following definitions apply in this
Part.
“compensation” means compensation
received during the 12-month period immediately preceding the day
on which the misrepresentation was made or on which the failure to
make timely disclosure first occurred, together with the fair market
value of all deferred compensation including, without limiting the
generality of the foregoing, options, pension benefits and stock appreciation
rights, granted during the same period, valued as of the date that
such compensation is awarded. (rémunération)
“core document” means (document essentiel)
(a) a prospectus, a take-over
bid circular, an issuer bid circular, a directors’ circular,
a notice of change or variation in respect of a take-over bid circular,
an issuer bid circular or a directors’ circular, a rights offering
circular, management’s discussion and analysis, an annual information
form, an information circular, annual financial statements and interim
financial statements of the responsible issuer, where used in relation
to,
(i) a director of a responsible issuer
who is not also an officer of the responsible issuer,
(ii) an influential person, other than
an officer of the responsible issuer or an officer of an investment
fund manager, if the responsible issuer is an investment fund, or
(iii) a director or officer of an influential
person who is not also an officer of the responsible issuer, other
than an officer of an investment fund manager,
(b) a prospectus,
a take-over bid circular, an issuer bid circular, a directors’
circular, a notice of change or variation in respect of a take-over
bid circular, an issuer bid circular or a directors’ circular,
a rights offering circular, management’s discussion and analysis,
an annual information form, an information circular, annual financial
statements, interim financial statements and a report of a material
change required by this Act or the regulations of the responsible
issuer, where used in relation to,
(i) a
responsible issuer or an officer of the responsible issuer,
(ii) an investment fund manager, if the
responsible issuer is an investment fund, or
(iii) an officer of an investment fund manager, if the responsible
issuer is an investment fund, and
(c) such other documents
as are prescribed by regulation.
“document” means any written
communication, including a communication prepared and transmitted
only in electronic form, (document)
(a) that is required
to be filed with the Commission, or
(b) that is not required
to be filed with the Commission and
(i) that
is filed with the Commission,
(ii)
that is filed or required to be filed with a government or an agency
of a government under applicable securities or corporate law or with
any exchange or quotation and trade reporting system under its by-laws
or other regulatory instruments or its practices or policies, or
(iii) that is any other communication
the content of which would reasonably be expected to affect the market
price or value of a security of the responsible issuer.
“expert” means a person whose
profession gives authority to a statement made in a professional capacity
by the person, including, without limiting the generality of the foregoing,
an accountant, actuary, appraiser, auditor, engineer, financial analyst,
geologist or lawyer, but not including an entity that is an approved
rating organization for the purposes of the regulations. (expert)
“failure to make timely disclosure”
means a failure to disclose a material change in the manner and at
the time required under this Act or the regulations. (non-respect des obligations d’information occasionnelle)
“influential person” means,
in respect of a responsible issuer, (personne influente)
(a) a control person,
(b) a promoter,
(c) an insider who is not a director or officer of the responsible
issuer, or
(d) an investment fund manager, if the responsible
issuer is an investment fund.
“issuer’s security” means
a security of a responsible issuer and includes a security, (valeur mobilière d’un émetteur)
(a) the market price or value of which, or payment obligations
under which, are derived from or based on a security of the responsible
issuer, and
(b) which is created by a person on behalf of the
responsible issuer or is guaranteed by the responsible issuer.
“management’s discussion
and analysis” means the section of an annual information form,
annual report or other document that contains management’s discussion
and analysis of the financial condition and results of operations
of a responsible issuer as required under New Brunswick securities
law. (rapport de gestion)
“public oral statement” means
an oral statement made in circumstances in which a reasonable person
would believe that information contained in the statement will become
generally disclosed. (déclaration orale publique)
“release” means, with
respect to information or a document, to file with the Commission
or any other securities regulatory authority in Canada or an exchange
or to otherwise make available to the public. (publication)
“responsible issuer” means (émetteur responsable)
(a) a reporting issuer,
or
(b) any other issuer with a real and substantial connection
to New Brunswick, any securities of which are publicly traded.
Non-application of Part
161.11 This Part does not apply
(a) to the purchase of a security offered by a prospectus
during the period of distribution,
(b) except as prescribed by regulation, to the acquisition
of an issuer’s security pursuant to a distribution
(i) that is exempt from section 71 as provided for under the regulations
or in an order made by the Commission under section 80, or
(ii) that is exempt from section 78 as provided for under the regulations
or in an order made by the Commission,
(c) to the acquisition or disposition of an issuer’s
security in connection with or pursuant to a take-over bid or issuer
bid, as defined in section 106,
except as prescribed by regulation, or
(d) to such other transactions or class of transactions
as are prescribed by regulation.
Division B
Liability
Documents released by or public oral statements
by responsible issuer
161.2(1) Where a responsible issuer or a person with actual, implied or
apparent authority to act on behalf of a responsible issuer releases
a document that contains a misrepresentation, a person who acquires
or disposes of the issuer’s security during the period between
the time when the document was released and the time when the misrepresentation
contained in the document was publicly corrected has, without regard
to whether the person relied on the misrepresentation, a right of
action for damages against
(a) the responsible issuer,
(b) each director of the responsible issuer at the time
the document was released,
(c) each officer of the responsible issuer who authorized,
permitted or acquiesced in the release of the document,
(d) each influential person, and each director and officer
of an influential person, who knowingly influenced
(i) the responsible issuer or any person
acting on behalf of the responsible issuer to release the document,
or
(ii) a director or officer of the responsible
issuer to authorize, permit or acquiesce in the release of the document,
and
(e) each expert where,
(i) the misrepresentation is also contained
in a report, statement or opinion made by the expert,
(ii) the document includes, summarizes
or quotes from the report, statement or opinion of the expert, and
(iii) if the document was released by
a person other than the expert, the expert consented in writing to
the use of the report, statement or opinion in the document.
161.2(2) Where a person with actual, implied or apparent authority to
speak on behalf of a responsible issuer makes a public oral statement
that relates to the business or affairs of the responsible issuer
and that contains a misrepresentation, a person who acquires or disposes
of the issuer’s security during the period between the time
when the public oral statement was made and the time when the misrepresentation
contained in the public oral statement was publicly corrected has,
without regard to whether the person relied on the misrepresentation,
a right of action for damages against
(a) the responsible issuer,
(b) the person who made the public oral statement,
(c) each director and officer of the responsible
issuer who authorized, permitted or acquiesced in the making of the
public oral statement,
(d) each influential person, and each director and officer
of the influential person, who knowingly influenced
(i) the person who made the public oral
statement to make the public oral statement, or
(ii) a director or officer of the responsible
issuer to authorize, permit or acquiesce in the making of the public
oral statement, and
(e) each expert where,
(i) the misrepresentation is also contained
in a report, statement or opinion made by the expert,
(ii) the person making the public oral
statement includes, summarizes or quotes from the report, statement
or opinion of the expert, and
(iii) if the public oral statement was
made by a person other than the expert, the expert consented in writing
to the use of the report, statement or opinion in the public oral
statement.
161.2(3) Where an influential person or a person with actual, implied
or apparent authority to act or speak on behalf of the influential
person releases a document or makes a public oral statement that relates
to a responsible issuer and that contains a misrepresentation, a person
who acquires or disposes of the issuer’s security during the
period between the time when the document was released or the public
oral statement was made and the time when the misrepresentation contained
in the document or public oral statement was publicly corrected has,
without regard to whether the person relied on the misrepresentation,
a right of action for damages against
(a) the responsible issuer, if a director or officer of
the responsible issuer, or where the responsible issuer is an investment
fund, the investment fund manager, authorized, permitted or acquiesced
in the release of the document or the making of the public oral statement,
(b) the person who made the public oral statement,
(c) each director and officer of the responsible
issuer who authorized, permitted or acquiesced in the release of the
document or the making of the public oral statement,
(d) the influential person,
(e) each director and officer of the influential person
who authorized, permitted or acquiesced in the release of the document
or the making of the public oral statement, and
(f) each expert where,
(i) the misrepresentation is also contained
in a report, statement or opinion made by the expert,
(ii) the document or public oral statement
includes, summarizes or quotes from the report, statement or opinion
of the expert, and
(iii) if the document was released or
the public oral statement was made by a person other than the expert,
the expert consented in writing to the use of the report, statement
or opinion in the document or public oral statement.
161.2(4) Where a responsible issuer fails to make timely disclosure, a
person who acquires or disposes of the issuer’s security between
the time when the material change was required to be disclosed in
the manner required under this Act or the regulations and the subsequent
disclosure of the material change has, without regard to whether the
person relied on the responsible issuer having complied with its disclosure
requirements, a right of action for damages against
(a) the responsible issuer,
(b) each director and officer of the responsible issuer
who authorized, permitted or acquiesced in the failure to make timely
disclosure, and
(c) each influential person, and each director and officer
of an influential person, who knowingly influenced
(i) the responsible issuer or any person
acting on behalf of the responsible issuer in the failure to make
timely disclosure, or
(ii) a director or officer of the responsible
issuer to authorize, permit or acquiesce in the failure to make timely
disclosure.
161.2(5) In an action under this section, a person who is a director or
officer of an influential person is not liable in that capacity if
the person is liable as a director or officer of the responsible issuer.
161.2(6) In an action under this section,
(a) multiple misrepresentations having common subject
matter or content may, in the discretion of the court, be treated
as a single misrepresentation, and
(b) multiple instances of failure to make timely disclosure
of a material change or material changes concerning common subject
matter may, in the discretion of the court, be treated as a single
failure to make timely disclosure.
161.2(7) In an action under subsection (2) or (3), if the person who made
the public oral statement had apparent authority, but not implied
or actual authority, to speak on behalf of the responsible issuer,
no other person is liable with respect to any of the responsible issuer’s
securities that were acquired or disposed of before that other person
became, or should reasonably have become, aware of the misrepresentation.
Division C
Burden of proof and defences
Non-core documents and public oral statements
161.21(1) In an action under section 161.2 in relation to a misrepresentation in a document that is not a core
document, or a misrepresentation in a public oral statement, a person
is not liable, subject to subsection (2), unless the plaintiff proves
that the person
(a) knew, at the time that the document was released or
public oral statement was made, that the document or public oral statement
contained the misrepresentation,
(b) at or before the time that the document was released
or public oral statement was made, deliberately avoided acquiring
knowledge that the document or public oral statement contained the
misrepresentation, or
(c) was, through action or failure to act, guilty of gross
misconduct in connection with the release of the document or the making
of the public oral statement that contained the misrepresentation.
161.21(2) A plaintiff is not required to prove any of the matters set out
in subsection (1) in an action under section 161.2 in relation to an expert.
161.21(3) In an action under section 161.2 in relation to a failure to make timely disclosure, a person is
not liable, subject to subsection (4), unless the plaintiff proves
that the person
(a) knew, at the time that the failure to make timely disclosure
first occurred, of the change and that the change was a material change,
(b) at the time or before the failure to make timely
disclosure first occurred, deliberately avoided acquiring knowledge
of the change or that the change was a material change, or
(c) was, through action or failure to act, guilty of gross
misconduct in connection with the failure to make timely disclosure.
161.21(4) A plaintiff is not required to prove
any of the matters set out in subsection (3) in an action under section 161.2 in relation to
(a) a responsible issuer,
(b) an officer of a responsible issuer,
(c) an investment fund manager, or
(d) an officer of an investment fund manager.
161.21(5) A person is not liable in an action under section 161.2 in relation to a misrepresentation
or a failure to make timely disclosure if that person proves that
the plaintiff acquired or disposed of the issuer’s security
(a) with knowledge that the document or public oral
statement contained a misrepresentation, or
(b) with knowledge of the material change.
161.21(6) A person is not liable in an action under section 161.2 in relation to
(a) a misrepresentation if that person proves that
(i) before the release of the document
or the making of the public oral statement containing the misrepresentation,
the person conducted or caused to be conducted a reasonable investigation,
and
(ii) at the time of the release of the
document or the making of the public oral statement, the person had
no reasonable grounds to believe that the document or public oral
statement contained the misrepresentation, or
(b) a failure to make timely disclosure if that person proves
that
(i) before the failure to make timely
disclosure first occurred, the person conducted or caused to be conducted
a reasonable investigation, and
(ii) the person had no reasonable grounds
to believe that the failure to make timely disclosure would occur.
161.21(7) In determining whether an investigation
was reasonable under subsection (6), or whether any person is guilty
of gross misconduct under subsection (1) or (3), the court shall consider
all relevant circumstances, including,
(a) the nature of the responsible issuer,
(b) the knowledge, experience and function of the person,
(c) the office held, if the person was an officer,
(d) the presence or absence of another relationship
with the responsible issuer, if the person was a director,
(e) the existence, if any, and the nature of any system
designed to ensure that the responsible issuer meets its continuous
disclosure obligations,
(f) the reasonableness of reliance by the person on the
responsible issuer’s disclosure compliance system, on the responsible
issuer’s officers and employees and on others whose duties would
in the ordinary course have given them knowledge of the relevant facts,
(g) the period within which disclosure was required
to be made under the applicable law,
(h) in respect of a report, statement or opinion of an expert,
any professional standards applicable to the expert,
(i) the extent to which the person knew, or should reasonably
have known, the content and medium of dissemination of the document
or public oral statement,
(j) in the case of a misrepresentation, the role and responsibility
of the person in the preparation and release of the document or the
making of the public oral statement containing the misrepresentation
or the ascertaining of the facts contained in that document or public
oral statement, and
(k) in the case of a failure to make timely disclosure,
the role and responsibility of the person involved in a decision not
to disclose the material change.
161.21(8) A person is not liable in an action under section 161.2 in respect of a failure to make
timely disclosure if,
(a) the person proves that the material change was disclosed
by the responsible issuer in a report filed on a confidential basis
with the Commission under the regulations,
(b) the responsible issuer had a reasonable basis for making
the disclosure on a confidential basis,
(c) where the information contained in the report filed
on a confidential basis remains material, disclosure of the material
change was made public promptly when the basis for confidentiality
ceased to exist,
(d) the person or responsible issuer did not release a document
or make a public oral statement that, due to the undisclosed material
change, contained a misrepresentation, and
(e) where the material change became publicly known in a
manner other than the manner required under this Act or the regulations,
the responsible issuer promptly disclosed the material change in the
manner required under this Act or the regulations.
161.21(9) A person is not liable in an action under section 161.2 for a misrepresentation in forward-looking
information if the person proves all of the following:
(a) that the document or public oral statement containing
the forward-looking information contained, proximate to that information,
(i) reasonable cautionary language
identifying the forward-looking information as such, and identifying
material factors that could cause actual results to differ materially
from a conclusion, forecast or projection in the forward-looking information,
and
(ii) a statement of the material factors
or assumptions that were applied in drawing a conclusion or making
a forecast or projection set out in the forward-looking information;
and
(b) that the person had a reasonable basis for drawing the
conclusions or making the forecasts and projections set out in the
forward-looking information.
161.21(10) A person shall be deemed to have satisfied the requirements
of paragraph (9)(a) with respect
to a public oral statement containing forward-looking information
if the person who made the public oral statement
(a) made a cautionary statement that the oral statement
contained forward-looking information,
(b) stated that
(i) the actual results could differ materially
from a conclusion, forecast or projection in the forward-looking information,
and
(ii) certain material factors or assumptions
were applied in drawing a conclusion or making a forecast or projection
as reflected in the forward-looking information, and
(c) stated that additional information about the following
is contained in a readily available document or in a portion of such
a document and has identified that document or that portion of the
document:
(i) the material factors that could cause
actual results to differ materially from the conclusion, forecast
or projection in the forward-looking information; and
(ii) the material factors or assumptions
that were applied in drawing a conclusion or making a forecast or
projection as reflected in the forward-looking information.
161.21(11) For the purposes of paragraph (10)(c), a document filed with the Commission or otherwise generally
disclosed shall be deemed to be readily available.
161.21(12) Subsection (9) does not relieve a person of liability respecting
forward-looking information in a financial statement required to be
filed under this Act or the regulations or forward-looking information
in a document released in connection with an initial public offering.
161.21(13) A person, other than an expert, is
not liable in an action under section 161.2 with respect to any part of a document or public oral statement
that includes, summarizes or quotes from a report, statement or opinion
made by the expert in respect of which the responsible issuer obtained
the written consent of the expert to the use of the report, statement
or opinion, if the consent had not been withdrawn in writing before
the document was released or the public oral statement was made, if
the person proves that
(a) the person did not know and had no reasonable grounds
to believe that there had been a misrepresentation in the part of
the document or public oral statement made on the authority of the
expert, and
(b) the part of the document or oral public statement fairly
represented the report, statement or opinion made by the expert.
161.21(14) An expert is not liable in an action under section 161.2 with respect to any part of a document
or public oral statement that includes, summarizes or quotes from
a report, statement or opinion made by the expert, if the expert proves
that the written consent previously provided was withdrawn in writing
before the document was released or the public oral statement was
made.
161.21(15) A person is not liable in an action
under section 161.2 in respect of
a misrepresentation in a document, other than a document required
to be filed with the Commission, if the person proves that, at the
time of release of the document, the person did not know and had no
reasonable grounds to believe that the document would be released.
161.21(16) A person is not liable in an action
under section 161.2 for a misrepresentation
in a document or a public oral statement, if the person proves that
(a) the misrepresentation was also contained in
a document filed by or on behalf of another person, other than the
responsible issuer, with the Commission or any other securities regulatory
authority in Canada or an exchange and was not corrected in another
document filed by or on behalf of that other person with the Commission
or that other securities regulatory authority in Canada or exchange
before the release of the document or the public oral statement made
by or on behalf of the responsible issuer,
(b) the document or public oral statement contained a reference
identifying the document that was the source of the misrepresentation,
and
(c) when the document was released or the public oral statement
was made, the person did not know and had no reasonable grounds to
believe that the document or public oral statement contained a misrepresentation.
161.21(17) A person, other than the responsible
issuer, is not liable in an action under section 161.2 if the misrepresentation or failure
to make timely disclosure was made without the knowledge or consent
of the person and, if, after the person became aware of the misrepresentation
before it was corrected, or the failure to make timely disclosure
before disclosure was made in the manner required under this Act or
the regulations,
(a) the person promptly notified the board of directors
of the responsible issuer or other persons acting in a similar capacity
of the misrepresentation or the failure to make timely disclosure,
and
(b) if no correction of the misrepresentation or no subsequent
disclosure of the material change in the manner required under this
Act or the regulations was made by the responsible issuer within 2
business days after the notification under paragraph (a), the person, unless prohibited
by law or by professional confidentiality rules, promptly and in writing
notified the Commission of the misrepresentation or failure to make
timely disclosure.
Division D
Damages
Assessment of damages
161.3(1) Damages shall be assessed in favour of a person that acquired
an issuer’s securities after the release of a document or the
making of a public oral statement containing a misrepresentation or
after a failure to make timely disclosure as follows:
(a) in respect of any of the securities of the responsible
issuer that the person subsequently disposed of on or before the tenth
trading day after the public correction of the misrepresentation or
the disclosure of the material change in the manner required under
this Act or the regulations, assessed damages shall equal the difference
between the average price paid for those securities, including any
commissions paid in respect of those securities, and the price received
on the disposition of those securities, without deducting any commissions
paid in respect of the disposition, calculated taking into account
the result of hedging or other risk limitation transactions;
(b) in respect of any of the securities of the responsible
issuer that the person subsequently disposed of after the tenth trading
day after the public correction of the misrepresentation or the disclosure
of the material change in the manner required under this Act or the
regulations, assessed damages shall equal the lesser of
(i) an amount equal to the difference
between the average price paid for those securities, including any
commissions paid in respect of those securities, and the price received
on the disposition of those securities, without deducting any commissions
paid in respect of the disposition, calculated taking into account
the result of hedging or other risk limitation transactions, and
(ii) an amount equal to the number
of securities that the person disposed of, multiplied by the difference
between the average price per security paid for those securities,
including any commissions paid in respect of those securities determined
on a per security basis, and
(A) if the issuer’s securities
trade on a published market, the trading price of the issuer’s
securities on the principal market for the 10 trading days following
the public correction of the misrepresentation or the disclosure of
the material change in the manner required under this Act or the regulations,
or
(B) if there is no published market,
the amount that the court considers just; and
(c) in respect of any of the securities of the responsible
issuer that the person has not disposed of, assessed damages shall
equal the number of securities acquired, multiplied by the difference
between the average price per security paid for those securities,
including any commissions paid in respect of the securities determined
on a per security basis, and
(i) if the issuer’s securities trade
on a published market, the trading price of the issuer’s securities
on the principal market for the 10 trading days following the public
correction of the misrepresentation or the disclosure of the material
change in the manner required under this Act or the regulations, or
(ii) if there is no published market,
the amount that the court considers just.
161.3(2) Damages shall be assessed in favour of a person that disposed
of securities after a document was released or a public oral statement
was made containing a misrepresentation or after a failure to make
timely disclosure as follows:
(a) in respect of any of the securities of the responsible
issuer that the person subsequently acquired on or before the tenth
trading day after the public correction of the misrepresentation or
the disclosure of the material change in the manner required under
this Act or the regulations, assessed damages shall equal the difference
between the average price received on the disposition of those securities,
deducting any commissions paid in respect of the disposition, and
the price paid for those securities, without including any commissions
paid in respect of those securities, calculated taking into account
the result of hedging or other risk limitation transactions;
(b) in respect of any of the securities of the responsible
issuer that the person subsequently acquired after the tenth trading
day after the public correction of the misrepresentation or the disclosure
of the material change in the manner required under this Act or the
regulations, assessed damages shall equal the lesser of
(i) an amount equal to the difference
between the average price received on the disposition of those securities,
deducting any commissions paid in respect of the disposition, and
the price paid for those securities, without including any commissions
paid in respect of those securities, calculated taking into account
the result of hedging or other risk limitation transactions, and
(ii) an amount equal to the number
of securities that the person disposed of, multiplied by the difference
between the average price per security received on the disposition
of those securities, deducting any commissions paid in respect of
the disposition determined on a per security basis, and
(A) if the issuer’s securities
trade on a published market, the trading price of the issuer’s
securities on the principal market for the 10 trading days following
the public correction of the misrepresentation or the disclosure of
the material change in the manner required under this Act or the regulations,
or
(B) if there is no published market,
the amount that the court considers just; and
(c) in respect of any of the securities of the responsible
issuer that the person has not acquired, assessed damages shall equal
the number of securities that the person disposed of, multiplied by
the difference between the average price per security received on
the disposition of those securities, deducting any commissions paid
in respect of the disposition determined on a per security basis,
and
(i) if the issuer’s securities trade
on a published market, the trading price of the issuer’s securities
on the principal market for the 10 trading days following the public
correction of the misrepresentation or the disclosure of the material
change in the manner required under this Act or the regulations, or
(ii) if there is no published market,
the amount that the court considers just.
161.3(3) Notwithstanding subsections (1) and (2), assessed damages shall
not include any amount that the defendant proves is attributable to
a change in the market price of securities that is unrelated to the
misrepresentation or the failure to make timely disclosure.
Proportionate liability
161.31(1) In an action under section 161.2, the court shall determine, in respect of each defendant found liable
in the action, the defendant’s responsibility for the damages
assessed in favour of all plaintiffs in the action, and each such
defendant shall be liable, subject to the limits set out in subsection 161.4(2), to the plaintiffs for only that
portion of the aggregate amount of damages assessed in favour of the
plaintiffs that corresponds to that defendant’s responsibility
for the damages.
161.31(2) Notwithstanding subsection (1), where, in an action under section 161.2 in respect of a misrepresentation
or a failure to make timely disclosure, a court determines that a
particular defendant, other than the responsible issuer, authorized,
permitted or acquiesced in the making of the misrepresentation or
the failure to make timely disclosure while knowing it to be a misrepresentation
or a failure to make timely disclosure, the whole amount of the damages
assessed in the action may be recovered from that defendant.
161.31(3) Each defendant in respect of whom the court has made a determination
under subsection (2) is jointly and severally liable with each other
defendant in respect of whom the court has made a determination under
subsection (2).
161.31(4) Any defendant against whom recovery is obtained under subsection
(2) is entitled to claim contribution from any other defendant who
is found liable in the action.
Limits on damages
161.4(1) In this section, “liability limit” means,
(a) in the case of a responsible issuer, the greater of
(i) 5% of its market capitalization,
and
(ii) $1,000,000,
(b) in the case of a director or officer of a responsible
issuer, the greater of
(i) $25,000, and
(ii) 50% of the aggregate of the director’s
or officer’s compensation from the responsible issuer and its
affiliates,
(c) in the case of an influential person who is not an individual,
the greater of
(i) 5% of its market capitalization, and
(ii) $1,000,000,
(d) in the case of an influential person who is an individual,
the greater of
(i) $25,000, and
(ii) 50% of the aggregate of the influential
person’s compensation from the responsible issuer and its affiliates,
(e) in the case of a director or officer of an influential
person, the greater of
(i) $25,000, and
(ii) 50% of the aggregate of the director’s
or officer’s compensation from the influential person and its
affiliates,
(f) in the case of an expert, the greater of
(i) $1,000,000, and
(ii) the revenue that the expert and the
affiliates of the expert have earned from the responsible issuer and
its affiliates during the 12 months preceding the misrepresentation,
and
(g) in the case of each person who made a public oral statement,
other than an individual referred to in paragraph (d), (e) or (f), the greater
of
(i) $25,000, and
(ii) 50% of the aggregate of the person’s
compensation from the responsible issuer and its affiliates.
161.4(2) Notwithstanding section 161.3, the damages payable by a person in an action under section 161.2 is the lesser of
(a) the aggregate damages assessed against the person in
the action, and
(b) the liability limit for the person less the aggregate
of all damages assessed after appeals, if any, against the person
in all other actions brought under section 161.2, and under comparable legislation in other provinces
or territories in Canada in respect of that misrepresentation or failure
to make timely disclosure, and less any amount paid in settlement
of any such actions.
161.4(3) Subsection (2) does not apply to a person, other than the responsible
issuer, if the plaintiff proves that the person authorized, permitted,
influenced or acquiesced in the making of the misrepresentation or
the failure to make timely disclosure while knowing that it was a
misrepresentation or a failure to make timely disclosure.
Division E
Procedural Matters
Leave to proceed
161.41(1) No action may be commenced under section 161.2 without leave of the court and the court shall grant
leave only where it is satisfied that
(a) the action is being brought in good faith, and
(b) there is a reasonable possibility that the action
will be resolved at trial in favour of the plaintiff.
161.41(2) The person making the application for leave to commence an action
shall, on filing the Notice of Preliminary Motion and any supporting
affidavits under the Rules of Court, send a copy of the Notice of
Preliminary Motion and the affidavits to the Commission.
Notice
161.5 A person that has been granted leave to
commence an action under section 161.2 shall
(a) promptly issue a news release disclosing that leave
has been granted to commence an action under section 161.2,
(b) send a written notice to the Commission within 7 days,
together with a copy of the news release, and
(c) send a copy of the Statement of Claim and the originating
process to the Commission when filed or issued.
Restriction on discontinuation of action
161.51(1) An action under section 161.2 shall not be discontinued or settled without the approval of the
court given on such terms and conditions as the court considers appropriate,
including, without limiting the generality of the foregoing, terms
as to costs.
161.51(2) In determining whether to approve the settlement of the action,
the court shall consider, among other things, whether there are any
other actions outstanding under section 161.2 or under comparable legislation in other provinces or
territories in Canada in respect of the same misrepresentation or
failure to make timely disclosure.
Costs
161.6 The prevailing party in an action under
section 161.2 is entitled to costs
determined by a court in accordance with the Rules of Court.
Power of the Commission
161.7 The Commission may intervene in an action
under section 161.2 and in an application
for leave under section 161.41.
No derogation from other rights
161.8 The right of action for damages and the
defences to an action under section 161.2 are in addition to, and without derogation from, any other rights
or defences the plaintiff or defendant may have in an action brought
otherwise than under this Part.
Limitation period
161.9 No action shall be commenced under section 161.2,
(a) in the case of misrepresentation in a document, later
than the earlier of
(i) 3 years after the date on which the
document containing the misrepresentation was first released, and
(ii) 6 months after the issuance
of a news release disclosing that leave has been granted to commence
an action under section 161.2 or
under comparable legislation in another province or territory of Canada
in respect of the same misrepresentation,
(b) in the case of a misrepresentation in a public oral
statement, later than the earlier of
(i) 3 years after the date on which the
public oral statement containing the misrepresentation was made, and
(ii) 6 months after the issuance
of a news release disclosing that leave has been granted to commence
an action under section 161.2 or
under comparable legislation in another province or territory of Canada
in respect of the same misrepresentation, and
(c) in the case of a failure to make timely disclosure,
later than the earlier of
(i) 3 years after the date on which the
requisite disclosure was required to be made, and
(ii) 6 months after the issuance of a
news release disclosing that leave has been granted to commence an
action under section 161.2 or under
comparable legislation in another province or territory of Canada
in respect of the same failure to make timely disclosure.
174 Subsection 162(2) of the Act is amended by striking out “Commission
or any member or employee of the Commission” and substituting “Commission, any member
of the Commission or any employee of the Commission”.
175 Section 168 is amended
(a) by repealing subsection
(1) and substituting the following:
168(1) The Commission, any member of the Commission, any employee of
the Commission or any agent of the Commission may conduct a review
of the disclosures that have been made or that ought to have been
made by a reporting issuer or an investment fund, on a basis to be
determined at the discretion of the Commission or the Executive Director.
(b) by repealing subsection (2) and substituting
the following:
168(2) A reporting issuer or an investment fund that is subject to a
review under this section shall, at such time or times as the Commission
or Executive Director requires, deliver to the Commission or Executive
Director any information and documents relevant to the disclosures
that have been made or that ought to have been made by the reporting
issuer or investment fund.
(c) by repealing subsection
(4) and substituting the following:
168(4) A reporting issuer or an investment fund, or any person acting
on behalf of a reporting issuer or an investment fund, shall not make
any representation, orally or in writing, that the Commission has
expressed an opinion on or in any way passed judgment on the merits
of the disclosure record of the reporting issuer or investment fund.
176 Section 170 of the Act is amended
(a) in paragraph (1)(a)
by striking out “of this Act” and substituting “of this Act or the
regulations”;
(b) in subsection (2)
(i) in paragraph (c)
by striking out “from the requirement to be registered under
this Act” and substituting “from the requirement to be registered under this Act or the
regulations”;
(ii) in paragraph
(e) by striking out “a mutual fund” and substituting “an investment fund”;
(c) in subsection (4) of
the French version by striking out “sous forme électronique
s’ils existent déjà sous cette forme” and substituting “sur support électronique
s’ils existent déjà ainsi”.
177 Paragraph 171(1)(a) of the Act is amended by striking out “of
this Act” and substituting “of this Act or the regulations”.
178 Section 177 of the Act is amended
(a) by repealing subsection
(1) and substituting the following:
177(1) All information or evidence obtained pursuant to an investigation
under this Part, including, without limiting the generality of the
foregoing, the fact that an investigation is being conducted, a report
referred to in section 176, the
name of any person examined or sought to be examined, the nature or
content of any questions asked, the nature or content of any demands
for the production of any document or other thing or the fact that
any document or other thing was produced is confidential and shall
not be disclosed by any person except
(a) to the person’s legal counsel,
(b) where authorized in writing by the Executive Director,
or
(c) as otherwise permitted by this Act or the regulations.
(b) by adding after subsection (1) the following:
177(1.1) Notwithstanding subsection (1), an
investigator making an investigation under this Part may make, or
authorize the making of, such disclosure of information as may be
required for the effectual conduct of the investigation.
(c) in subsection
(2) by adding after paragraph (c) the following:
(c.1) a supplementary member of the Commission;
179 Section 178 of the Act is repealed and the following is substituted:
178(1) Where the Commission, the Executive
Director or an investigator is of the opinion that it would not be
prejudicial to the public interest to do so, the Commission, the Executive
Director or the investigator, as the case may be, may provide information
to and receive information from other securities or financial regulatory
authorities, exchanges, self-regulatory bodies or organizations, law
enforcement agencies and other governmental or regulatory authorities,
both in New Brunswick and elsewhere.
178(2) Any information received by the Commission under subsection (1)
is confidential and shall not, except where authorized in writing
by the Executive Director, be disclosed by any person other than an
investigator.
178(3) The Commission or the Executive Director may enter into an agreement
or arrangement for the purposes of subsection (1) with any person
referred to in that subsection.
180 Section 179 of the Act is amended
(a) by repealing subsection
(1);
(b) by repealing subsection
(4) and substituting the following:
179(4) Notwithstanding subsection (2), where a person is convicted of
contravening subsection 147(2),
the fine to which the person is liable is
(a) not less than the profit made or loss avoided by the
person by reason of the contravention, and
(b) not more than the greater of
(i) $1,000,000, and
(ii) an amount equal to triple the profit
made or loss avoided by the person by reason of the contravention.
(c) by repealing subsection (5) and substituting
the following:
179(5) Notwithstanding subsection (2), where a person is convicted of
contravening subsection 147(4),
(4.1) or (5), the fine to which the person is liable is
(a) not less than the profit made or loss avoided by any
person by reason of the contravention, and
(b) not more than the greater of
(i) $1,000,000, and
(ii) an amount equal to triple the profit
made or loss avoided by any person by reason of the contravention.
(d) by adding after subsection (6) the following:
179(7) For the purposes of subsections (4),
(5) and (6), the amount of the profit made and loss avoided shall
be determined in accordance with the regulations.
181 Subsection 183(1) of the Act is amended in the portion preceding
paragraph (a) by striking out “of this Act” and substituting “of this Act or the
regulations”.
182 Section 184 of the Act is amended
(a) in subsection (1)
(i) by repealing paragraph
(c) and substituting the following:
(c) an order that
(i) trading in or purchasing cease in
respect of any securities specified in the order, or
(ii) a person specified in the order cease
trading in or purchasing securities, specified securities or a class
of securities;
(ii) in paragraph
(f) by striking out the portion preceding subparagraph (i) and substituting
the following:
(f) if the Commission is satisfied that New Brunswick securities
law has not been complied with, an order that a release, a report,
a preliminary prospectus, a prospectus, a return, a financial statement,
an information circular, a take-over bid circular, an issuer bid circular,
a notice of change or variation in respect of a take-over bid circular
or an issuer bid circular, an offering memorandum, a proxy solicitation
or any other document described in the order
(iii) in paragraph
(m) by striking out “senior officers” and substituting “officers”;
(iv) by repealing
paragraph (n);
(v) in paragraph (o)
by striking out the period at the end of the paragraph and substituting
a semicolon followed by “or”;
(vi) by adding after
paragraph (o) the following:
(p) if a person has not complied with New Brunswick securities
law, an order requiring the person to disgorge to the Commission any
amounts obtained as a result of the non-compliance.
(b) by adding after subsection
(1) the following:
184(1.1) In addition to the power to make orders under subsection (1),
the Commission may, after providing an opportunity to be heard, make
one or more of the orders referred to in paragraphs (1)(a) to (d) and (1)(g) to (i) against a person if the person
(a) has been convicted in Canada or elsewhere of
an offence
(i) arising from a transaction, business
or course of action related to securities, or
(ii) under the laws of the jurisdiction
respecting trading in securities,
(b) has been found by a court or tribunal of competent jurisdiction
in Canada or elsewhere to have contravened or to have failed to comply
with the laws of the jurisdiction respecting trading in securities,
(c) is subject to an order made by a securities
regulatory authority in Canada or elsewhere imposing sanctions, conditions,
restrictions or requirements on the person, or
(d) has agreed with a securities regulatory authority in
Canada or elsewhere to be subject to sanctions, conditions, restrictions
or requirements.
(c) in subsection (3) by
striking out “notwithstanding the filing of a report with it
under subsection 89(2)” and substituting “notwithstanding the filing of a
report of the material change with it on a confidential basis under
the regulations”;
(d) by repealing subsection
(4) and substituting the following:
184(4) Unless the parties and the Commission consent, no order shall
be made under this section, except under subsection (1.1), without
a hearing.
183 Subsection 187(4) of the Act is amended
(a) in paragraph (c) by
striking out the portion preceding subparagraph (i) and substituting
the following:
(c) an order directing that a release, a report, a preliminary
prospectus, a prospectus, a return, a financial statement, an information
circular, a take-over bid circular, an issuer bid circular, a notice
of change or variation in respect of a take-over bid circular or an
issuer bid circular, an offering memorandum, a proxy solicitation
or any other document described in the order
(b) in paragraph (o) by
striking out “Minister” and substituting “Commission”;
(c) in paragraph (q) by
striking out “senior officers” and substituting “officers”.
184 The Act is amended by adding after section 188 the following:
Compensation for financial losses
188.1(1) On the application of a claimant, the Executive Director may,
when the Commission holds a hearing about a person, request it to
make an order that the person pay the claimant compensation for financial
loss.
188.1(2) Notwithstanding subsection 193(1), the Executive Director’s
decision whether to make a request to the Commission is not reviewable
by the Commission.
188.1(3) When so requested by the Executive Director, the Commission may
order the person to pay the claimant compensation of not more than
$100,000 for the claimant’s financial loss, if, after the hearing,
the Commission
(a) determines that the person has contravened or failed
to comply
(i) with a provision of this Act that
is listed in Schedule A or with any provision of the regulations,
(ii) with a decision of the Commission
or the Executive Director,
(iii) with a written undertaking made
by the person to the Commission or the Executive Director, or
(iv) with a term or condition imposed
on the person’s registration,
(b) is able to determine the amount of the financial loss
on the evidence, and
(c) finds that the person’s contravention or failure
caused the financial loss in whole or in part.
188.1(4) If the contravention or failure occurs in the course of the person’s
employment by another person, or while the person is acting on behalf
of the other in any other capacity, the Commission may order the other
person to jointly and severally pay the claimant the financial compensation
ordered under subsection (3).
188.1(5) For the purposes of subsection (4), a person is employed by another
person when
(a) an employer-employee relationship exists, or
(b) the first person is registered under this Act
or the regulations in an employee, agent or representative capacity
through the second person.
188.1(6) The Commission may make an order under subsection (3) notwithstanding
the imposition of any other penalty on the person or the making of
any other order by the Commission related to the same matter.
188.1(7) The Commission shall not make an order under subsection (3) if
the claimant has commenced a civil court proceeding for compensation
for the same loss.
188.1(8) A claimant shall inform the Commission without delay after commencing
a civil court proceeding for the same loss.
188.1(9) Once the Commission opens a hearing where a claim for compensation
for financial loss is one of the matters before it, the claimant is
not entitled to commence a civil court proceeding for compensation
for the same loss or any unclaimed loss arising out of the same transaction.
188.1(10) Notwithstanding subsection (9), a claimant in whose favour the
Commission makes an order under subsection (3) may at any time file
a certified copy of the order with the clerk of the Court of Queen’s
Bench, and on being filed with the clerk of the Court of Queen’s
Bench that order has the same force and effect as if it were a judgment
of the Court of Queen’s Bench in favour of the claimant and
against the person the Commission ordered to pay the compensation.
Failure to comply with filing requirements
188.2(1) For the reasons set out in subsection (2), the Executive Director,
without a hearing, may make an order applicable generally, or to any
person or class of persons specified in the order, that trading in
a security or class of securities specified in the order shall cease.
188.2(2) The Executive Director may make an order under subsection (1)
if the issuer of the security or the person in respect of which the
order is made
(a) fails to file a document or record required to be filed
under this Act or the regulations, or
(b) files a document or record required to be filed under
this Act or the regulations, which document or record has not been
completed in accordance with this Act or the regulations.
188.2(3) An order made under subsection (1) shall be revoked as soon as
possible after the document or record referred to in the order, completed
in accordance with this Act and the regulations, is filed.
188.2(4) The Executive Director shall send to any person directly affected
by an order made under subsection (1) a written notice of the order
and a written notice of a revocation of the order, if any.
185 Paragraph 190(b) of the Act is amended by striking out “this
Act” and substituting “this Act or the regulations”.
186 The heading “Resolution of proceedings” preceding section
191 of the Act is repealed and the following is substituted:
Resolution of administrative proceedings
187 Section 191 of the Act is amended
(a) by repealing subsection
(1) and substituting the following:
191(1) Notwithstanding any other provision of this Act or the regulations,
an administrative proceeding conducted by the Commission or the Executive
Director under this Act or the regulations may be disposed of by
(a) an agreement approved by the Commission or the
Executive Director, as the case may be,
(b) a written undertaking made by a person to the Commission
or the Executive Director that has been accepted by the Commission
or Executive Director, as the case may be, or
(c) if the parties have waived the hearing or compliance
with any requirement of this Act or the regulations, a decision of
the Commission or Executive Director, as the case may be, made without
a hearing or without compliance with the requirement of this Act or
the regulations.
(b) in subsection (2) by
striking out “as a decision made by the Commission pursuant
to any other provision of this Act” and substituting “as a decision made
by the Commission or the Executive Director under any other provision
of this Act or under the regulations”.
188 Section 192 of the Act is amended by striking out “under this
Act” and substituting “under this Act or the regulations”.
189 Section 195 of the Act is amended
(a) in subsection (1) by
striking out “within 30 days after the later of the making of
the final decision and the issuing of the reasons for the final decision”;
(b) in paragraph (3)b)
of the French version by striking out “ainsi que tous motifs”
and substituting “ainsi
que tous motifs, le cas échéant”;
(c) by adding after subsection
(6) the following:
195(6.1) To the extent that they are not inconsistent with this section,
the Rules of Court apply to an appeal under this section.
190 The Act is amended by adding after section 195 the following:
PART 15.1
INTERJURISDICTIONAL COOPERATION
Definitions and interpretation
195.1(1) The following definitions apply in this Part.
“extra-provincial authority”
means any power, function or duty of an extra-provincial securities
commission that is, or is intended to be, performed or exercised
by that commission under the extra-provincial securities laws under
which that commission operates. (compétences extraprovinciales)
“extra-provincial securities commission”
means a body empowered under the laws of a province or territory of
Canada other than New Brunswick to regulate trading in securities
or to administer or enforce laws respecting trading in securities. (commission des valeurs mobilières extraprovinciale)
“extra-provincial securities
laws” means the laws of a province or territory of Canada other
than New Brunswick that, with respect to that province or territory,
deal with the regulation of securities markets and the trading in
securities in the province or territory. (législation extraprovinciale
régissant les valeurs mobilières)
“New Brunswick authority” means
any power, function or duty of the Commission or of the Executive
Director that is, or is intended to be, performed or exercised by
the Commission or the Executive Director under New Brunswick securities
law. (compétences du Nouveau-Brunswick)
195.1(2) A reference to an extra-provincial
securities commission shall be construed to include, unless otherwise
provided in this Act or the regulations,
(a) its delegate, and
(b) any person who in respect of that extra-provincial securities
commission exercises a power or performs a duty or function that is
substantially similar to a power, duty or function exercised or performed
by the Executive Director under this Act or the regulations.
Delegation, transfer and acceptance of
authority
195.11(1) Subject to subsection (2) and the regulations,
the Commission may by order, for the purposes of this Part,
(a) delegate or transfer any New Brunswick authority
to an extra-provincial securities commission, and
(b) accept a delegation or transfer of any extra-provincial
authority from an extra-provincial securities commission.
195.11(2) The Commission shall not delegate or transfer any New Brunswick
authority under Part 2, this Part or section 200.
Subdelegation
195.2(1) Subject to any restrictions or conditions imposed by an extra-provincial
securities commission with respect to the delegation or transfer of
an extra-provincial authority to the Commission, the Commission may
subdelegate the extra-provincial authority in the manner and to the
extent that the Commission or the Executive Director, as the case
may be, may delegate any New Brunswick authority under section 16 or 24.
195.2(2) Subject to any restrictions or conditions
imposed by the Commission with respect to the delegation or transfer
of a New Brunswick authority to an extra-provincial securities commission,
nothing in this Part is to be construed as prohibiting the extra-provincial
securities commission from subdelegating the New Brunswick authority
in the manner and to the extent that the extra-provincial securities
commission may delegate its authority under the extra-provincial securities
laws under which it operates.
Adoption or incorporation of extra-provincial
securities laws
195.3(1) Subject to the regulations, the Commission may by order adopt
or incorporate by reference as New Brunswick securities law all or
part of any extra-provincial securities laws of a jurisdiction to
be applied to
(a) a person or class of persons whose primary jurisdiction
is that jurisdiction, or
(b) trades or other activities involving a person or class
of persons referred to in paragraph (a).
195.3(2) If the Commission adopts or incorporates
by reference any extra-provincial securities laws under subsection
(1), it may adopt or incorporate it by reference as amended from time
to time, whether before or after the adoption or incorporation by
reference, and with the necessary modifications.
Exemptions
195.4 Subject to the regulations, the Commission
may make an order exempting, in whole or in part, a person, security
or trade or a class of persons, securities or trades from compliance
with the requirements of New Brunswick securities law if the person,
security or trade or class of persons, securities or trades, as the
case may be, satisfies the conditions set out in the order.
Exercise of discretion
195.5(1) Subject to the regulations, if the Commission or the Executive
Director is empowered to make a decision regarding a person, trade
or security, the Commission or the Executive Director may make a decision
on the basis that the Commission or the Executive Director, as the
case may be, considers that an extra-provincial securities commission
has made a substantially similar decision regarding the person, trade
or security.
195.5(2) Notwithstanding any other provision of this Act, but subject
to the regulations, the Commission or Executive Director may make
a decision referred to in subsection (1) without giving a person affected
by the decision an opportunity to be heard.
Immunity regarding New Brunswick authority
195.6(1) The following definitions apply in this section.
“Commission” includes the Executive
Director and any member of the Commission, any supplementary member
of the Commission and any officer, employee or agent of the Commission. (Commission)
“securities regulatory authority”
means (organisme de réglementation des valeurs
mobilières)
(a) an extra-provincial
securities commission referred to in subsection (3) and includes any
member, officer, employee, appointee or agent of that commission,
(b) any person referred to in paragraph (3)(b), or
(c) any exchange, self-regulatory
organization or quotation and trade reporting system referred to in
paragraph (3)(c).
195.6(2) No action or other proceeding may be brought against the Commission
or a securities regulatory authority for anything done or not done,
or for any neglect,
(a) in the performance or exercise, or the intended performance
or exercise, in good faith of a New Brunswick authority, or
(b) in delegating or transferring in good faith
a New Brunswick authority or in accepting in good faith the delegation
or transfer of a New Brunswick authority, as the case may be.
195.6(3) This section applies only with respect to a New Brunswick authority
(a) that has been delegated or transferred by the
Commission to an extra-provincial securities commission,
(b) that
(i) has been subdelegated by an extra-provincial
securities commission to a person other than an exchange, a self-regulatory
organization or a quotation and trade reporting system, and
(ii) is, or is intended to be,
exercised by the person, or by the person’s subdelegate other
than an exchange, a self-regulatory organization or a quotation and
trade reporting system, or
(c) that
(i) has been subdelegated by an extra-provincial
securities commission to an exchange, a self-regulatory organization
or a quotation and trade reporting system that is recognized or authorized
by the extra-provincial securities commission to carry on business,
and
(ii) is, or is intended to be, exercised
by the exchange, self-regulatory organization or quotation and trade
reporting system.
Immunity regarding extra-provincial authority
195.7(1) The following definitions apply in this section.
“Commission” includes the Executive
Director and any member of the Commission, any supplementary member
of the Commission and any officer, employee or agent of the Commission. (Commission)
“securities regulatory authority”
means (organisme de réglementation des valeurs
mobilières)
(a) any person referred
to in paragraph (3)(b), or
(b) any exchange, self-regulatory organization or quotation
and trade reporting system referred to in paragraph (3)(c).
195.7(2) No action or other proceeding may be brought against the Commission
or a securities regulatory authority for anything done or not done,
or for any neglect,
(a) in the performance or exercise, or the intended performance
or exercise, in good faith of any extra-provincial authority, or
(b) in delegating or transferring in good faith
an extra-provincial authority or in accepting in good faith the delegation
or transfer of an extra-provincial authority, as the case may be.
195.7(3) This section applies only with respect to an extra-provincial
authority
(a) that has been delegated or transferred by an extra-provincial
securities commission to the Commission,
(b) that
(i) has been subdelegated to a person
by the Commission other than to an exchange, a self-regulatory organization
or a quotation and trade reporting system, and
(ii) is, or is intended to be, exercised
by the person or by the person’s subdelegate other than an exchange,
a self-regulatory organization or a quotation and trade reporting
system, or
(c) that
(i) has been subdelegated by the Commission
to an exchange, a self-regulatory organization or a quotation and
trade reporting system that is recognized under section 35, and
(ii) is, or is intended to be, exercised
by the exchange, self-regulatory organization or quotation and trade
reporting system.
Appeal regarding extra-provincial decision
195.8(1) The following definitions apply in this section.
“extra-provincial decision”
means a decision, ruling, order, direction or other requirement made
by an extra-provincial securities commission under a New Brunswick
authority delegated or transferred to that extra-provincial securities
commission by the Commission. (décision extraprovinciale)
“extra-provincial securities commission”
means the extra-provincial securities commission that made the extra-provincial
decision that is being appealed under this section. (commission des valeurs mobilières extraprovinciale)
195.8(2) A person that is directly affected
by an extra-provincial decision that is final may, with leave of a
judge of the Court of Appeal, appeal that extra-provincial decision
to the Court of Appeal.
195.8(3) Notwithstanding the fact that an appeal is taken under this section,
the extra-provincial decision appealed from takes effect immediately,
but the extra-provincial securities commission, the Commission or
the Court of Appeal may grant a stay of the extra-provincial decision
until disposition of the appeal.
195.8(4) The extra-provincial securities commission is the respondent
to an appeal under this section.
195.8(5) A copy of the Notice of Appeal shall, within 15 days after the
Notice of Appeal is issued, be personally served on the Commission.
195.8(6) The Commission is entitled to be heard by counsel or otherwise
on the argument of an appeal under this section, whether or not the
Commission is named as a party to the appeal.
195.8(7) To the extent that they are not inconsistent with this section,
the Rules of Court apply to an appeal under this section.
195.8(8) The Court of Appeal may, with respect to an appeal under this
section, do the following:
(a) make any order or direction that it considers appropriate
with respect to the commencement or conduct of the appeal or any matter
relating to the appeal;
(b) confirm, vary or reject the extra-provincial decision;
(c) make any decision that the extra-provincial
securities commission could have made and substitute the Court of
Appeal’s decision for that of the extra-provincial securities
commission.
Appeal regarding decision
of the Commission
195.9(1) In this section, “delegated authority” means any
extra-provincial authority that is delegated or transferred to the
Commission and is accepted by the Commission under section 195.11.
195.9(2) A person that is directly affected by a final decision of the
Commission made pursuant to a delegated authority or a final decision
of the Commission that is made under section 195.5 may, with leave of a judge of the Court of Appeal, appeal
that decision to the Court of Appeal in accordance with section 195, and that section applies with the
necessary modifications to the appeal.
195.9(3) A person that has a right to appeal a decision under this section
may, subject to any direction of the Court of Appeal, exercise that
right of appeal whether or not that person may have a right to appeal
that decision to a court in another jurisdiction.
195.9(4) Notwithstanding subsection (3), if a decision referred to in
subsection (2) is being appealed to a court in another jurisdiction,
the Court of Appeal may stay an appeal under this section pending
the determination of the appeal in the other jurisdiction.
191 Paragraph 196(1)(a) of the Act is amended by striking out “under
this Act” and substituting “under this Act or the regulations”.
192 Section 198 of the Act is amended
(a) in subsection (3) by
striking out “Subject to subsection (4)” and substituting “Subject to subsections
(4) and (6)”;
(b) by adding after subsection
(4) the following:
198(5) If the Executive Director makes a decision under subsection (4)
to hold information or material or a class of information or materials
in confidence or not to hold information or material or a class of
information or materials in confidence and that decision is reviewed
by the Commission under section 193, the decision made by the Commission under subsection 193(6) is final and, notwithstanding subsection 195(1), is not subject to appeal under
section 195.
198(6) The Commission may, on the application of an interested person
or the Executive Director and after giving the interested person or
the Executive Director an opportunity to be heard, make an order directing
that any information or class of information or any material or class
of materials filed with the Commission or Executive Director under
New Brunswick securities law be held in confidence if the Commission
is of the opinion that the information or material so held discloses
intimate financial, personal or other information and that the desirability
of avoiding disclosure of the information in the interests of any
person affected outweighs the desirability of adhering to the principle
that information or material filed with the Commission or the Executive
Director be available to the public for inspection.
198(7) A decision of the Commission made under subsection (4) or an
order of the Commission made under subsection (6) is final and, notwithstanding
subsection 195(1), is not subject
to appeal under section 195.
193 Subsection 199(4) of the Act is amended by striking out “3
consecutive occasions” and substituting “2 consecutive occasions”.
194 Section 200 of the Act is amended
(a) in subsection (1)
(i) by repealing paragraph
(a) and substituting the following:
(a) respecting the application for registration and the
amendment or reinstatement of registration;
(ii) by adding after
paragraph (d) the following:
(d.1) respecting circumstances in which a person is deemed
to be registered for the purposes of this Act, the regulations or
the rules, including without limiting the generality of the foregoing,
the circumstance in which a person is registered under the laws of
another jurisdiction in Canada respecting trading in securities;
(iii)
in paragraph (k) by striking out “by registrants, including
without limiting the generality of the foregoing, authorizing the
Commission to require the provision of such information or material
as the Commission considers appropriate in the form it requires”
and substituting “by
registrants or unregistered directors, partners, salespersons, officers
and control persons of registrants”;
(iv) in paragraph
z) of the French version by striking out “qui font l’objet
d’opérations dans le public” and substituting “qui sont cotées à
la bourse”;
(v) by adding after
paragraph (bb) the following:
(bb.1) prescribing circumstances in which a person is prohibited
from trading or purchasing securities or a particular security, including
without limiting the generality of the foregoing, the circumstance
in which a securities regulatory authority in another jurisdiction
has ordered that
(i) a person is prohibited from trading
or purchasing securities or a particular security, or
(ii) trades or purchases of a particular
security cease;
(vi) in paragraph
(ee) by striking out “under this Act” and substituting “under this Act, the regulations
and the rules”;
(vii) in paragraph
(ff) in the portion preceding subparagraph (i) by striking out “a
prospectus” and substituting “a preliminary prospectus, a prospectus
or an amendment to a preliminary prospectus or prospectus”;
(viii) in paragraph
(gg) by striking out the portion preceding subparagraph (i) and substituting
the following:
(gg) respecting, for the purposes of section 78, the lapse date of a prospectus and
the continuation of a distribution after the lapse date, including
without limiting the generality of the foregoing,
(ix) by repealing
paragraph (hh) and substituting the following:
(hh) respecting requirements in respect of amendments to
preliminary prospectuses or prospectuses, including without limiting
the generality of the foregoing,
(i) prescribing the circumstances under
which an amendment to a preliminary prospectus or prospectus must
be filed and delivered, and
(ii) establishing requirements to obtain
a receipt for an amendment to a preliminary prospectus or prospectus;
(x)
by repealing paragraph (ii) and substituting the following:
(ii) respecting the distribution of securities or
the issuing of receipts, including without limiting the generality
of the foregoing,
(i) varying any of the requirements under
this Act to facilitate, expedite or regulate the distribution of securities
or the issuing of receipts,
(ii) establishing requirements in respect
of distributions of securities by means of a prospectus incorporating
other documents by reference,
(iii) establishing requirements in respect
of distributions of securities by means of a simplified or summary
prospectus or other form of disclosure document,
(iv) establishing requirements in respect
of distributions of securities on a continuous or delayed basis,
(v) establishing requirements in respect
of pricing of distributions of securities after the issuance of a
receipt for the prospectus filed in relation to the securities,
(vi) establishing procedures for
the issuing of receipts for prospectuses after expedited or selective
review,
(vii) respecting circumstances in which
a receipt is deemed to have been issued for the purposes of this Act,
the regulations or the rules, including the circumstance in which
a receipt has been issued for a preliminary prospectus or prospectus
under the laws of another jurisdiction in Canada respecting trading
in securities,
(viii) establishing provisions for the
incorporation by reference of certain documents in a prospectus or
other document prescribed by regulation or rule and the effect, including
from a liability and evidentiary perspective, of modifying or superseding
statements, and
(ix) establishing provisions for eligibility
requirements to file a prospectus or obtain a receipt for, or distribute
under, a particular form of prospectus and the loss of that eligibility;
(xi)
by adding after paragraph (ii) the following:
(ii.1) respecting provisions for varying withdrawal rights;
(ii.2) prescribing circumstances in which a person
that purchases a security under a distribution may cancel the purchase,
including without limiting the generality of the foregoing,
(i) prescribing the period in which
the purchaser may cancel the purchase,
(ii) prescribing the principles for determining
the amount of the refund if the purchaser cancels the purchase, and
(iii) specifying the persons responsible
for making and administering the payment of the refund and prescribing
the period in which the refund must be paid;
(xii) by adding after
paragraph (pp) the following:
(pp.1) prescribing requirements in connection with the first
trade of securities previously acquired under an exemption from the
prospectus requirements under this Act, the regulations or the rules;
(xiii) by adding after
paragraph (qq) the following:
(qq.1) respecting the requirement to maintain a record of all
persons to whom a preliminary prospectus has been sent under section 82 and respecting the availability of
the record;
(xiv) in paragraph
(rr) by striking out “sections 88 and 149” and substituting “section 149”;
(xv) by repealing
paragraph (ss) and substituting the following:
(ss) respecting requirements in relation to the preparation
and dissemination and other use, by reporting issuers, of documents
providing for continuous disclosure, including without limiting the
generality of the foregoing, requirements in relation to
(i) financial statements,
(ii) supplemental analysis of financial
statements,
(iii) an annual report,
(iv) a business acquisition report, and
(v) an annual information form;
(xvi)
by adding after paragraph (ss) the following:
(ss.1) respecting requirements for the disclosure or provision
of information or material to the public, the Commission or the Executive
Director by reporting issuers;
(ss.2) respecting requirements with respect to the disclosure
by reporting issuers of material changes, including without limiting
the generality of the foregoing,
(i) prescribing the time period within
which a reporting issuer must make disclosure of a material change,
(ii) prescribing the manner in
which a reporting issuer must make disclosure of a material change,
and
(iii) prescribing circumstances under
which a material change may remain confidential;
(ss.3) respecting the preparation, form and content requirements
applicable to the public dissemination of forward-looking information
by reporting issuers where the dissemination is not part of a required
filing;
(xvii) in paragraph
(tt) by striking out “paragraph (ss)” and substituting “paragraph (ss), (ss.1), (ss.2) or (ss.3)”;
(xviii) in paragraph
(uu) by striking out “or class of issuers”;
(xix) by
repealing paragraph (ww);
(xx) in paragraph
(xx)
(A) in subparagraph
(ii) by striking out “future-oriented financial information”
and substituting “forward-looking
information”;
(B) by repealing
subparagraph (v) and substituting the following:
(v) requirements respecting a change in
the financial year of an issuer or in an issuer’s status as
a reporting issuer under this Act, the regulations or the rules,
(C) in
subparagraph (vi) by striking out the semicolon at the end of the
subparagraph and substituting a comma followed by “and”;
(D) by adding
after subparagraph (vi) the following:
(vii) requiring evaluations of reporting
issuers’ internal control over financial reporting and requiring
reporting issuers to obtain audits of their internal control over
financial reporting, including their management’s evaluation;
(xxi)
in paragraph (yy) by striking out “and varying any requirements
under this Act in relation to the validity and solicitation of proxies”;
(xxii)
by repealing paragraph (aaa) and substituting the following:
(aaa) regulating take-over bids, issuer bids, insider
bids, going-private transactions, business combinations and related
party transactions, including without limiting the generality of the
foregoing,
(i) prescribing requirements or prohibitions
relating to the conduct or management of the affairs of an issuer
and of the affairs of its directors and officers before, during or
after an offer to acquire, acquisition, offer to redeem, redemption,
going-private transaction, business combination or related party transaction,
(ii) prescribing requirements for
disclosure, valuations, review by independent committees of boards
of directors and approval by minority security holders,
(iii) prescribing requirements respecting
defensive tactics in connection with take-over bids,
(iv) prohibiting a person from purchasing
or trading a security before, during or after an offer to acquire,
acquisition, offer to redeem, redemption, going-private transaction,
business combination or related party transaction, and
(v) for the purposes of section 126, prescribing types or classes of securities
and prescribing percentages, disclosure requirements and prohibitions;
(xxiii)
by adding after paragraph (bbb) the following:
(bbb.1) prescribing insider reporting requirements in respect
of a person;
(bbb.2) respecting requirements for the disclosure or provision
of information or material to the public, the Commission or the Executive
Director by insiders, including without limiting the generality of
the foregoing,
(i) prescribing requirements respecting
the reporting by insiders of any direct or indirect beneficial ownership
of, or control or direction over, securities of a reporting issuer
or changes in ownership, control or direction,
(ii) prescribing requirements respecting
the reporting by insiders of any interest in or right or obligation
associated with a related financial instrument or changes in such
interests, rights or obligations,
(iii) prescribing requirements respecting
the reporting by insiders of any agreement, arrangement or understanding
that alters, directly or indirectly, an insider’s economic interest
in a security of a reporting issuer or an insider’s economic
exposure to a reporting issuer or changes in such agreements, arrangements
or understandings, and
(iv) prescribing the circumstances when
a person shall be deemed to have been an insider;
(bbb.3) extending any requirements under paragraph (bbb.2) to other persons;
(xxiv) in
paragraph (eee)
(A) in the portion
preceding subparagraph (i) by striking out “mutual funds and
non-redeemable investment funds” and substituting “investment funds”;
(B) in subparagraph
(vi) by striking out “mutual funds” and substituting “investment funds”;
(C) in subparagraph
(ix) by striking out “a mutual fund” wherever it appears
and substituting “an
investment fund”;
(D) by repealing
subparagraph (xi) and substituting the following:
(xi) prescribing procedures applicable
to investment funds, registrants and any other person in respect of
sales and redemptions of investment fund securities and payments for
sales and redemptions,
(E) in subparagraph
(xii) by striking out “mutual funds or non-redeemable investment
funds;” and substituting “investment funds, and”;
(F) by adding
after subparagraph (xii) the following:
(xiii) regulating conflicts of interest
between the investment fund and the investment fund manager;
(xxv)
by repealing paragraph (jjj) and substituting the following:
(jjj) varying the application of this Act or any
regulation or rule to foreign issuers to facilitate distributions,
compliance with requirements applicable or relating to reporting issuers
and the making of take-over bids, issuer bids, insider bids, going-private
transactions, business combinations and related party transactions;
(xxvi)
by adding after paragraph (kkk) the following:
(kkk.1) prescribing requirements with respect to the governance
of reporting issuers for the purposes of section 148.1;
(kkk.2) requiring investment funds to establish and maintain
a body for the purposes described in subsection 148.2(1), prescribing its powers and duties
and prescribing requirements relating to
(i) the mandate and functioning of the
body,
(ii) the composition of the body and qualifications
for membership on the body, including matters respecting the independence
of members, and the process for selecting the members,
(iii) the standard of care that applies
to members of the body when exercising their powers, performing their
duties and carrying out their responsibilities,
(iv) the disclosure of information to
security holders of the investment fund, to the investment fund manager
and to the Commission, and
(v) matters affecting the investment fund
that require review by the body or the approval of the body;
(xxvii)
by repealing paragraph (lll) and substituting the following:
(lll) respecting the designation or recognition
of any person or jurisdiction if advisable for the purposes of this
Act, the regulations or the rules, including without limiting the
generality of the foregoing,
(i) recognizing an exchange, a self-regulatory
organization, a quotation and trade reporting system or a clearing
agency for any of the purposes of this Act, the regulations or the
rules,
(ii) designating a person for the purpose
of the definition “market participant”, and
(iii) designating a person or class of
persons for the purpose of the definitions “insider”, “mutual
fund”, “non-redeemable investment fund” or “reporting
issuer” to be, or not to be, an insider, mutual fund, non-redeemable
investment fund or reporting issuer;
(xxviii) by adding
after paragraph (lll) the following:
(lll.1) prescribing documents for the purposes of the definition
of “core document” in section 161.1;
(lll.2) providing for the application of Part 11.1 to the acquisition
of an issuer’s security pursuant to a distribution that is exempt
from section 71 or 78 and to the acquisition or disposition
of an issuer’s security in connection with or pursuant to a
take-over bid or issuer bid;
(lll.3) prescribing transactions or classes of transactions
for the purposes of paragraph 161.11(d);
(lll.4) respecting the determination of the amount of the profit
made or loss avoided for the purposes of subsection 179(7);
(xxix) by adding after
paragraph (nnn) the following:
(nnn.1) respecting the administration and distribution of amounts
disgorged to the Commission under paragraph 184(1)(p) or 187(4)(o);
(nnn.2) respecting the delegation or transfer of any New Brunswick
authority to an extra-provincial securities commission under section 195.11;
(nnn.3) respecting the acceptance by the Commission of any delegation
or transfer of an extra-provincial authority from an extra-provincial
securities commission under section 195.11;
(nnn.4) respecting any amendments to, or the revocation of,
any delegation, transfer or acceptance of a delegation or transfer
referred to in paragraph (nnn.2) or (nnn.3);
(nnn.5) respecting the adoption or incorporation by reference
of extra-provincial securities laws under section 195.3, including the administration of
those laws once adopted or incorporated by reference;
(nnn.6) respecting the administration of exemptions from New
Brunswick securities law under section 195.4;
(nnn.7) respecting the administration of extra-provincial securities
laws arising from or as a result of any matters described in paragraphs
(nnn.2) to (nnn.6);
(xxx) in paragraph
(ppp) by striking out “this Act” and substituting “this Act, the regulations
or the rules”;
(xxxi) by adding after
(qqq) the following:
(qqq.1) governing conflicts of interest for members of the Commission,
supplementary members of the Commission and employees of the Commission;
(qqq.2) authorizing the Minister or the Commission
to require a person to dispose of a security acquired as a result
of an intentional or accidental violation of any provision of a regulation
or rule made under paragraph (qqq.1);
(qqq.3) respecting the practice and procedure for hearings permitted
or required under this Act, the regulations or the rules;
(xxxii)
by adding after paragraph (rrr) the following:
(rrr.1) prescribing the circumstances in which persons shall
be deemed to have delivered or sent documents or information required
under or governed by this Act, the regulations or the rules;
(xxxiii)
in paragraph (sss) by striking out “varying the requirements
under this Act to permit or require” and substituting “permitting or requiring,
or varying this Act to permit or require”;
(xxxiv) by repealing
paragraph (vvv) and substituting the following:
(vvv) providing for electronic signatures for the signing
of documents and prescribing the circumstances under which persons
shall be deemed to have signed or certified documents on an electronic
or computer-based system for any purpose of this Act, the regulations
or the rules;
(xxxv) in paragraph
(www) by striking out “, including without limiting the generality
of the foregoing, the circumstances under which and the conditions
on which any such exemption applies”;
(xxxvi) by adding
after paragraph (www) the following:
(www.1) respecting the circumstances under which and the conditions
on which exemptions referred to in paragraph (www) apply, including without limiting
the generality of the foregoing, circumstances and conditions
(i) relating to the laws of another
jurisdiction or relating to an exemption from a requirement of those
laws granted by a securities regulatory authority in that jurisdiction,
or
(ii) that apply to a person or a class
of persons designated by the Commission;
(xxxvii) in paragraph
(yyy) by striking out “78, 82, 88 or 149” and substituting “82 or 149”;
(b) in subsection (2)
(i) by repealing paragraph
(a);
(ii) by repealing
paragraph (b);
(iii) by repealing
paragraph (c);
(c) in subsection (7) by
striking out “any by-laws” and “any by-law”
and substituting “any
laws, any by-laws” and “any law, any by-law” respectively;
(d) in subsection (8) by
striking out “may vary for” and substituting “may vary for or be made in
respect of”.
195 Section 204 of the Act is repealed and
the following is substituted:
204(1) No agreement, memorandum of understanding or arrangement entered
into by the Commission shall come into effect without the approval
of the Minister.
204(2) If the Minister approves an agreement, memorandum of understanding
or arrangement referred to in subsection (1), it comes into effect
on the date specified in the agreement, memorandum of understanding
or arrangement and, if no date is specified, on the date that the
Minister approves it.
204(3) This section does not apply to
(a) agreements, memoranda of understanding or arrangements
relating to the administration and management of the Commission’s
business and affairs, and
(b) agreements, memoranda of understanding or arrangements
relating to the harmonization of securities regulation or interjurisdictional
cooperation between securities regulatory authorities.
196 Section 208 of the Act is amended
(a) by renumbering the
section as subsection 208(1);
(b) in subsection (1) by
striking out “on the application of an interested person”
and substituting “on
the application of an interested person or the Executive Director”;
(c) by adding after subsection
(1) the following:
208(2) An order under subsection (1) may be retroactive in its operation.
197 Schedule A of the Act is amended
(a) by adding after
58(4)
the following:
58.1 |
58.2(2)(a) |
58.2(2)(b) |
(b) by striking out
76(1) |
76(3) |
77(1)(a) |
77(1)(b) |
77(2)(a) |
77(2)(b) |
78(2) |
83 |
84 |
and
substituting
(c) by striking out
88(1)
(d) by striking
out
89(1)(a) |
89(1)(b) |
89(4) |
90(1) |
90(2) |
91(1) |
93(1) |
93(2) |
100 |
101(1) |
and
substituting
89(1)(a) |
89(1)(b) |
89(1)(c) |
89(2) |
(e) by striking out
114 to 127
and substituting
(f) by striking out
and
substituting
135
(g) by striking out
137(1)(a) |
137(1)(b) |
137(2)(a) |
137(2)(b) |
137(2)(c) |
138 |
141(1) |
143(1) |
144(1)(a) |
144(1)(b) |
144(1)(c) |
(h) by striking out
and
substituting
147(2)(a) |
147(2)(b) |
147(2)(c) |
147(2)(d) |
147(4) |
147(4.1)(a) |
147(4.1)(b) |
147(4.1)(c) |
147(4.1)(d) |
147(5) |
147.2(2)(a) |
147.2(2)(b) |
147.2(2)(c) |
147.2(2)(d) |
147.2(3) |
COMMENCEMENT
198 Paragraphs 1(b), (c) and (d), section 36,
paragraphs 37(a) and (c), sections 38 to 40, 42 to 47, 63, 64, 74
to 123, 130 to 137, 142, 143, 146 to 149, 152, 153, 157 and 158, subparagraphs
159(a)(i) and (ii), paragraphs 163(a) and (b), subparagraphs 163(d)(ii)
and (iii), paragraph 163(h), sections 171, 172 and 193, subparagraphs
194(a)(xiv), (xxii), (xxvi) and (xxxvii) and paragraphs 197(b), (c),
(e), (f) and (g) of this Act or any provision of them come into force
on a day or days to be fixed by proclamation.
EXPLANATORY NOTES
Section 1
(a)
i) A correction is made in the
French version.
ii) Consequential amendment.
iii) Consequential amendment.
iv) The existing definition
is as follows:
“investment fund manager” means
a person who has the power and exercises the responsibility to direct
the affairs of an investment fund. (gestionnaire de fonds
d’investissement)
v) The existing definition is
as follows:
“issuer” means a person who
has outstanding, issues or proposes to issue a security. (émetteur)
vi)
A) Consequential amendment.
B) The existing provision is
as follows:
(e) a manager or custodian of assets, shares or units of
a mutual fund,
C) Consequential amendment.
vii)
A) The existing provision is
as follows:
“mutual fund” includes
B) Consequential amendment.
C) Consequential amendment.
D) Consequential amendment.
E) Consequential amendment.
viii)
A) Consequential amendment.
B) Consequential amendment.
C) Consequential amendment.
ix) Consequential amendment.
x) A correction is made in the
French version.
xi) Consequential amendment.
xii) Consequential amendment.
xiii) Consequential amendment.
xiv)
A) Consequential amendment.
B) The existing provision is
as follows:
(a) that has issued voting securities in respect of which
C) The existing provision is
as follows:
(d) that is the corporation whose existence continues following
the exchange of securities of a corporation by or for the account
of the corporation with another corporation or the holders of the
securities of that other corporation in connection with
(i) a statutory amalgamation, arrangement
or reorganization, or
(ii) a statutory procedure under which
one corporation takes title to the assets of the other corporation
that in turn ceases to exist by operation of law or under which the
existing corporations merge into a new corporation,
if one of the amalgamating or merged corporations
or the continuing corporation has been a reporting issuer for at least
12 months,
D) Consequential amendment.
E) Consequential amendment.
F) Consequential amendment.
xv) The existing definition
is as follows:
“sales literature” includes
discs, videotapes and similar material, written matter and all other
material, except preliminary prospectuses and prospectuses, designed
for use in a presentation to a purchaser or prospective purchaser,
whether such material is given or shown to the purchaser or prospective
purchaser. (documentation commerciale)
xvi) The existing provision
is as follows:
“self-regulatory organization”
means a person who represents registrants and is organized for the
purpose of regulating the operations and the standards of practice
and business conduct of its members and their representatives with
a view to promoting the protection of investors and the public interest. (organisme d’autoréglementation)
xvii) The existing definition
is as follows:
“senior officer” means (cadre dirigeant)
(a) the chair or a vice-chair
of the board of directors, the president, a vice-president, the secretary,
the treasurer or the general manager of a corporation or any other
individual who performs functions for an issuer similar to those normally
performed by an individual occupying any such office, and
(b) each of the 5 highest paid employees of an issuer, other
than commissioned salespersons who do not act in a management capacity,
including any individual referred to in paragraph (a).
xviii) New definitions.
(b) Consequential amendment.
(c) Consequential amendment.
(d) Consequential amendment.
Section 2
New provisions.
Section 3
Consequential amendment.
Section 4
Consequential amendment.
Section 5
Consequential amendment.
Section 6
New provisions.
Section 7
Consequential amendments.
Section 8
Consequential amendment.
Section 9
(a) Consequential amendment.
(b) Consequential amendment.
(c) Consequential amendment.
Section 10
Consequential amendment.
Section 11
The existing provision is as follows:
16(1) The Executive Director may delegate his or her powers and duties
under this Act or the regulations to an employee of the Commission
other than the powers and duties delegated to the Executive Director
under subsection 24(1).
16(2) The Executive Director may impose such terms and conditions as
he or she considers appropriate on a delegation made under subsection
(1).
16(3) The Executive Director may revoke,
in whole or in part, a delegation made under subsection (1).
16(4) A decision, ruling, order, temporary order or direction made
by a person under a delegation made by the Executive Director under
subsection (1) shall be deemed to be a decision, ruling, order, temporary
order or direction of the Executive Director.
Section 12
(a) The existing provision is
as follows:
20 No action lies for damages or otherwise against any of the following
persons in relation to anything done or purported to be done in good
faith, or in relation to anything omitted in good faith, under this
Act by the person:
(b) Consequential amendment.
(c) Consequential amendment.
Section 13
(a) Consequential amendment.
(b) Consequential amendment.
(c) Consequential amendment.
Section 14
(a)
i) Consequential amendment.
ii) Consequential amendment.
(b) Consequential amendment.
Section 15
(a) Consequential amendment.
(b) New provision.
Section 16
New provisions.
Section 17
The existing provision is as follows:
24(1) Subject to subsection (3), the Commission may delegate its powers
and duties under this Act or the regulations to the Chair, another
member of the Commission, the Executive Director or a committee of
the Commission established by the by-laws of the Commission.
24(2) The Commission may impose such terms and conditions as it considers
appropriate on a delegation made under subsection (1).
24(3) The Commission shall not delegate the power to conduct contested
hearings on the merits or the power to make rules under section 200.
24(4) The Commission may revoke, in whole or in part, a delegation
made under subsection (1).
24(5) No member of the Commission who exercises a power or performs
a duty of the Commission under Part 13 in respect of a matter under
investigation shall sit on a hearing by the Commission that deals
with the matter, except with the written consent of the parties to
the proceeding.
24(6) A decision, ruling, order, temporary order or direction made
by a person under a delegation made by the Commission under subsection
(1) shall be deemed to be a decision, ruling, order, temporary order
or direction of the Commission.
Section 18
Consequential amendment.
Section 19
Consequential amendment.
Section 20
The existing provision is as follows:
33(2) The Committee shall consist of not more than 5 members appointed
by the Minister.
Section 21
The exiting provision is as follows:
47(1) An application for registration or renewal or reinstatement of
registration or amendment to registration shall be made to the Executive
Director in writing in the form prescribed by regulation and shall
be accompanied by the fee prescribed by regulation.
47(2) An applicant shall state in an application for registration an
address for service in New Brunswick.
Section 22
Consequential amendment.
Section 23
(a)
i) Consequential amendment.
ii) Consequential amendment.
iii) Consequential amendment.
(b) The existing provision is
as follows:
48(2) The Executive Director may, in granting a registration, a renewal
or a reinstatement of registration or an amendment to registration,
restrict the registration of the applicant by imposing terms and conditions
on the registration and, without limiting the generality of the foregoing,
may restrict
(a) the duration of the registration, and
(b) the registration to trades in certain securities or
a certain class of securities.
(c) Consequential amendment.
Section 24
Consequential amendment.
Section 25
Consequential amendment.
Section 26
The existing provision is as follows:
51 On the application of a registrant, the Executive Director may accept,
subject to the regulations and such terms and conditions as the Executive
Director considers appropriate, the voluntary surrender of the registration
of the registrant, if the Executive Director is satisfied that the
financial obligations of the registrant to the registrant’s
clients have been discharged and that the surrender of the registration
would not be prejudicial to the public interest.
Section 27
The existing provision is as follows:
53(1) Subject to subsection (2), the Executive Director may, following
a hearing, make an order suspending or cancelling the registration
of a registrant if the Executive Director is of the opinion that the
registrant has contravened or failed to comply with a term or condition
imposed on the registration under subsection 48(2).
Section 28
New provision.
Section 29
(a) Consequential amendment.
(b) Consequential amendment.
Section 30
(a)
i) The existing provision is
as follows:
58(1) No person, with the intention of effecting a trade in a security,
other than a security that carries an obligation of the issuer to
redeem or purchase it or a right of the owner to require redemption
or purchase of it, shall make any representation, orally or in writing,
that the person or another person
ii) Consequential amendment.
iii) Consequential amendment.
(b) New provision.
(c) The existing provision is
as follows:
58(4) No person, with the intention of effecting a trade in a security,
shall make a statement, orally or in writing, that the person knows
or ought reasonably to know is a misrepresentation.
Section 31
New provisions.
Section 32
Consequential amendment.
Section 33
Consequential amendment.
Section 34
The existing provision is as follows:
65 No person shall make any representation, orally or in writing, that
the Commission has in any way passed judgment on the financial standing,
fitness or conduct of any registrant or on the merits of any security
or issuer.
Section 35
The existing provision is as follows:
73 On the filing of a preliminary prospectus under this Part, the Executive
Director shall issue a receipt for the preliminary prospectus.
Section 36
(a) The existing provision is
as follows:
74(3) Subject to any waiver or variation consented to in writing by
the Executive Director, a prospectus shall contain such certificates
as are required by the regulations.
(b) The existing provision is
as follows:
74(4) A prospectus shall contain a statement of the rights given to
a purchaser of securities offered by the prospectus by sections 88
and 149.
Section 37
(a) New provision.
(b) Consequential amendment.
(c)
i) The existing provision is
as follows:
(iv) having regard to the financial condition
of the issuer or an officer, director, promoter, or a person or combination
of persons holding a sufficient number of the securities of the issuer
to affect materially the control of the issuer, the issuer cannot
reasonably be expected to be financially responsible in the conduct
of its business,
ii) The existing provision is
as follows:
(v) the past conduct of the issuer or
an officer, director, promoter, or a person or combination of persons
holding a sufficient number of the securities of the issuer to affect
materially the control of the issuer affords reasonable grounds for
belief that the business of the issuer will not be conducted with
integrity and in the best interests of its security holders,
iii) The existing provision
is as follows:
(vi) such escrow or pooling agreement
as the Executive Director considers necessary or advisable with respect
to securities has not been entered into,
iv) Consequential amendment.
v) The existing provision is
as follows:
(viii) in the case of a prospectus filed
by a finance company,
(A) the plan of distribution of the
securities offered is not acceptable,
(B) the securities offered are not
secured in such manner, on such terms and by such means as are required
by the regulations, or
(C) the finance company does not meet
such financial and other requirements and conditions as are prescribed
by regulation, or
Section 38
The existing provision is as follows:
76(1) Where an adverse material change occurs with respect to an issuer
after a receipt is issued for a preliminary prospectus but before
the receipt is issued for the prospectus, the person proposing to
make the distribution shall file with the Executive Director an amendment
to the preliminary prospectus disclosing the change within 10 days
after the change occurs.
76(2) On the filing of an amendment to a preliminary prospectus, the
Executive Director shall issue a receipt for the amendment to the
preliminary prospectus.
76(3) On the filing of an amendment to a preliminary prospectus, the
person filing the amendment shall ensure that the amendment is sent
to each recipient of the preliminary prospectus according to the record
maintained under section 84.
Section 39
The existing provision is as follows:
77(1) Where a material change occurs with respect to an issuer after
the receipt for a prospectus is issued but before the completion of
the distribution under the prospectus, the person making the distribution
(a) shall file with the Executive Director an amendment
to the prospectus disclosing the change within 10 days after the change
occurs, and
(b) except with the written permission of the Executive
Director, shall not proceed with the distribution until a receipt
for the amendment to the prospectus is issued by the Executive Director.
77(2) Where securities in addition to securities previously disclosed
in a prospectus or an amendment to the prospectus are to be distributed
after the receipt for the prospectus has been issued but before the
completion of the distribution under the prospectus, the person proposing
to make the distribution of additional securities
(a) shall file with the Executive Director an amendment
to the prospectus disclosing the additional securities within 10 days
after the decision to distribute the additional securities, and
(b) shall not proceed with the distribution of the
additional securities
(i) for a period of 10 days after the
amendment to the prospectus is filed, or
(ii) until such time as a receipt for
the amendment to the prospectus is issued by the Executive Director,
if the Commission informs the person proposing to make the distribution
in writing within 10 days after the filing of the amendment to the
prospectus that the Commission objects to the distribution of the
additional securities.
77(3) Subject to subsection (4) and on the filing of an amendment to
a prospectus referred to in subsection (1) or (2), the Executive Director
shall issue a receipt for the amendment to the prospectus unless in
the opinion of the Executive Director it is not in the public interest
to do so.
77(4) The Executive Director shall not issue
a receipt for an amendment to a prospectus filed under subsection
(1) or (2) if the Executive Director is of the opinion that any of
the circumstances referred to in subsection 75(2) exist.
77(5) The Executive Director shall not refuse to issue a receipt under
subsection (3) or (4) without giving the person who filed the amendment
to the prospectus an opportunity to be heard.
Section 40
The existing provision is as follows:
78(1) In this section, “lapse date”, where used in relation
to a security that is being distributed under subsection 71(1) or
this section, means the date that is 12 months after the date of the
most recent prospectus relating to the security.
78(2) Subject to subsection (3), no person shall continue a distribution
of a security after the lapse date, unless a new prospectus that complies
with this Part and the regulations is filed under subsection 71(1)
with the Executive Director in relation to the security and a receipt
for the new prospectus is issued by the Executive Director.
78(3) A distribution of a security may, subject to terms and conditions
prescribed by regulation, be continued for 12 months after a lapse
date.
78(4) A purchaser of securities may, in the
circumstances prescribed by regulation, cancel a trade made in reliance
on subsection (3).
78(5) On the application of an interested person or on the Commission’s
own motion, the Commission may extend, subject to such terms and conditions
as it considers appropriate, the period within which a distribution
may be continued after the lapse date.
78(6) Notwithstanding subsection 71(1), a person may file a new prospectus
in accordance with subsection (2) with the Executive Director without
having filed a preliminary prospectus and obtaining a receipt for
the preliminary prospectus.
Section 41
New provision.
Section 42
Consequential amendment.
Section 43
Consequential amendment.
Section 44
Consequential amendment.
Section 45
Consequential amendment.
Section 46
The existing provision is as follows:
85 Where in the opinion of the Executive Director a preliminary prospectus
does not substantially comply with the requirements of New Brunswick
securities law as to the form and content of a prospectus, the Executive
Director may, without giving notice, order that the trading permitted
by subsection 82(2) in the security to which the preliminary prospectus
relates shall cease until a revised preliminary prospectus satisfactory
to the Executive Director is filed with the Executive Director and
sent to each recipient of the defective preliminary prospectus according
to the record maintained under section 84.
Section 47
The existing provision is as follows:
88(1) A dealer, not acting as agent of the purchaser of a security,
who receives an order or subscription for a security offered in a
distribution to which subsection 71(1) applies shall, unless the dealer
has previously done so, send to the purchaser the latest prospectus
filed or required to be filed under this Act or the regulations in
relation to the security and any amendment to the prospectus filed
or required to be filed under this Act or the regulations
(a) before entering into an agreement of purchase and sale
resulting from the order or subscription, or
(b) not later than midnight on the second business day after
entering into the agreement.
88(2) An agreement of purchase and sale referred to in subsection (1)
is not binding on the purchaser if the dealer from whom the purchaser
purchases the security receives written notice evidencing the intention
of the purchaser not to be bound by the agreement of purchase and
sale not later than midnight on the second business day after receipt
by the purchaser of the latest prospectus and any amendment to the
prospectus.
88(3) Subsection (2) does not apply if the
purchaser is a registrant or if the purchaser sells or otherwise transfers
beneficial ownership of the security referred to in subsection (2),
otherwise than to secure indebtedness, before the expiration of the
time referred to in subsection (2).
88(4) A beneficial owner of the security who is not the purchaser under
this section may exercise the same rights under subsection (2) as
may be exercised by a purchaser.
88(5) A purchaser referred to in subsection (2) who is not the beneficial
owner of the security shall advise the person who is the beneficial
owner of the security of the provisions of subsections (2) and (4).
88(6) Subsection (5) only applies if the purchaser knows the name and
address of the beneficial owner of the security.
88(7) For the purpose of this section, receipt of the latest prospectus
and any amendment to the prospectus by a dealer who is acting as agent
of or who after receipt commences to act as agent of the purchaser
with respect to the purchase of a security referred to in subsection
(1) shall be deemed to be receipt by the purchaser as of the date
on which the agent received the latest prospectus and any amendment
to the prospectus.
88(8) For the purpose of this section, receipt of the notice referred
to in subsection (2) by a dealer who acted as agent of the vendor
with respect to the sale of the security referred to in subsection
(1) shall be deemed to be receipt by the vendor as of the date on
which the agent received the notice.
88(9) For the purpose of this section, a dealer shall not be considered
to be acting as agent of the purchaser unless the dealer is acting
solely as agent of the purchaser with respect to the purchase and
sale in question and has not received and has no agreement to receive
compensation from or on behalf of the vendor with respect to the purchase
and sale.
88(10) The onus of proving that the time
for giving notice under subsection (2) has expired is on the dealer
from whom the purchaser has agreed to purchase the security.
Section 48
Consequential amendment.
Section 49
The existing provision is as follows:
89(1) Subject to subsection (3), where a material change occurs with
respect to a reporting issuer, the reporting issuer shall
(a) without delay issue and file a news release prepared
in accordance with the regulations, and
(b) within the period prescribed by regulation, file a report
of the material change prepared in accordance with the regulations.
89(2) Paragraph (1)(a) does
not apply to a reporting issuer that without delay files the report
required under paragraph (1)(b) marked so as to indicate that it is confidential, together with
written reasons why a news release should not be issued and filed
under paragraph (1)(a), if
(a) the reporting issuer reasonably believes that
the issuance and filing of a news release required by paragraph (1)(a) would be unduly detrimental to
the interests of the reporting issuer, or
(b) the material change consists of a decision to implement
a change made by senior management of the reporting issuer who believe
that confirmation of the decision by the board of directors is probable
and senior management of the reporting issuer have no reason to believe
that persons with knowledge of the material change have made use of
that knowledge in purchasing or selling securities of the reporting
issuer.
89(3) Where a report has been filed under
subsection (2), the reporting issuer shall, if it believes the report
should continue to remain confidential, advise the Commission in writing
within 10 days after the date of filing of the report and every 10
days after that, until the material change is generally disclosed
in the manner referred to in paragraph (1)(a) or, if the material change consists
of a decision of the type referred to in paragraph (2)(b), until that decision has been
rejected by the board of directors of the reporting issuer.
89(4) Notwithstanding subsections (2) and (3), the reporting issuer
shall generally disclose the material change in the manner referred
to in paragraph (1)(a) on
the reporting issuer becoming aware, or having reasonable grounds
to believe, that persons are purchasing or selling securities of the
reporting issuer with knowledge of the material change that has not
been generally disclosed.
89(5) Notwithstanding subsections (2) and (3), where the Commission
is of the opinion that it is in the public interest that the material
change be disclosed, the Commission, after giving the reporting issuer
an opportunity to be heard, may order that the material change be
generally disclosed in the manner specified in the order.
89(6) Where, in the opinion of the Commission, a news release will
not receive the publicity necessary for the material change disclosed,
the Commission may take, or may require the reporting issuer to take,
any steps that the Commission considers expedient to ensure that the
material change is sufficiently disclosed.
Section 50
Consequential amendment.
Section 51
Consequential amendment.
Section 52
Consequential amendment.
Section 53
Consequential amendment.
Section 54
New provision.
Section 55
Consequential amendment.
Section 56
Consequential amendment.
Section 57
Consequential amendment.
Section 58
Consequential amendment.
Section 59
Consequential amendment.
Section 60
Consequential amendment.
Section 61
Consequential amendment.
Section 62
Consequential amendment.
Section 63
Consequential amendment:
Section 64
The existing provision is as follows:
97(1) On the application of any person, the Commission may issue a
certificate
(a) that an issuer is not a reporting issuer, or
(b) that a reporting issuer is not in default of any requirement
under this Act or the regulations.
97(2) A list of defaulting reporting issuers shall be maintained by
the Commission and shall be made available for public inspection at
the Commission offices during the normal business hours of the Commission.
97(3) Subject to subsection (4), a person may rely on a certificate
issued under paragraph (1)(a) to determine that an issuer is not a reporting issuer and may rely
on a certificate issued under paragraph (1)(b) or the list maintained under
subsection (2) to determine that a reporting issuer is not in default
of any requirement under this Act or the regulations.
97(4) No person who knows or ought reasonably to know that a reporting
issuer is in default of any requirement under this Act or the regulations
may rely on a certificate issued under paragraph (1)(b) or the list maintained under
subsection (2) to determine that the reporting issuer is not in default
of any requirement under this Act or the regulations.
Section 65
Consequential amendment.
Section 66
Consequential amendment.
Section 67
Consequential amendment.
Section 68
Consequential amendment.
Section 69
Consequential amendment.
Section 70
Consequential amendment.
Section 71
Consequential amendment.
Section 72
Consequential amendment.
Section 73
New provision.
Section 74
Consequential amendment.
Section 75
Consequential amendment.
Section 76
Consequential amendment.
Section 77
Consequential amendment.
Section 78
Consequential amendment.
Section 79
Consequential amendment.
Section 80
Consequential amendment.
Section 81
Consequential amendment.
Section 82
Consequential amendment.
Section 83
Consequential amendment.
Section 84
Consequential amendment.
Section 85
Consequential amendment.
Section 86
Consequential amendment.
Section 87
The existing provision is as follows:
112(1) Subject to the regulations, a take-over bid is exempt from sections
120 to 125 if
(a) the bid is made through the facilities of an exchange
recognized by the Commission for the purposes of this paragraph,
(b) all of the following conditions apply:
(i) the bid is for not more than
5% of the outstanding securities of a class of securities of the issuer;
(ii) the aggregate number of securities
acquired by the offeror and any person acting jointly or in concert
with the offeror within any period of 12 months in reliance on the
exemption provided by this paragraph does not, when aggregated with
acquisitions otherwise made by the offeror and any person acting jointly
or in concert with the offeror within the same 12-month period, constitute
in excess of 5% of the outstanding securities of that class of the
issuer at the beginning of the 12-month period; and
(iii) if there is a published market for
the securities acquired, the value of the consideration paid for any
of the securities acquired is not in excess of the market price at
the date of acquisition, determined in accordance with the regulations,
plus reasonable brokerage fees or commissions actually paid,
(c) all of the following conditions apply:
(i) purchases are made from not
more than 5 persons in the aggregate, including persons outside of
New Brunswick;
(ii) the bid is not made generally to
security holders of the class of securities that is the subject of
the bid; and
(iii) the value of the consideration paid
for any of the securities, including brokerage fees or commissions,
does not exceed 115% of the market price of securities of that class
at the date of the bid, determined in accordance with the regulations,
(d) all of the following conditions apply:
(i) the offeree issuer is not a
reporting issuer;
(ii) there is not a published market in
respect of the securities that are the subject of the bid; and
(iii) the number of holders of
securities of that class is not more than 50, exclusive of holders
who are in the employment of the offeree issuer or an affiliate of
the offeree issuer, and exclusive of holders who were formerly in
the employment of the offeree issuer or an affiliate of the offeree
issuer and who while in that employment were, and have continued after
that employment to be, security holders of the offeree issuer,
(e) all of the following conditions apply:
(i) the number of holders of securities
of the class subject to the bid whose last address as shown on the
books of the offeree issuer is in New Brunswick is fewer than 50;
(ii) the securities held by such
holders constitute, in the aggregate, less than 2% of the outstanding
securities of that class;
(iii) the bid is made in compliance with
the laws of a jurisdiction that is recognized by the Commission for
the purposes of this subparagraph; and
(iv) all material relating to the bid
that is sent by the offeror to holders of securities of the class
that is subject to the bid is concurrently filed and is concurrently
sent to all holders of such securities whose last address as shown
on the books of the offeree issuer is in New Brunswick, or
(f) the bid is exempted by the regulations.
112(2) For the purposes of paragraph (1)(c), where an offeror makes an offer to acquire securities
from a person and the offeror knows or ought to know after reasonable
inquiry that
(a) one or more other persons on whose behalf that person
is acting as nominee, agent, trustee, executor, administrator or other
legal representative has a direct beneficial interest in those securities,
then each of such others shall be included in the determination of
the number of persons to whom the offer to acquire has been made,
but, if an inter vivos trust
has been established by a single settlor or if an estate has not vested
in all persons beneficially entitled to it, the trust or estate shall
be considered a single security holder in such determination, or
(b) the person acquired the securities in order
that the offeror might make use of the exemption provided by paragraph
(1)(c), then each person from
whom those securities were acquired shall be included in the determination
of the number of persons to whom the offer to acquire has been made.
Section 88
Consequential amendment.
Section 89
Consequential amendment.
Section 90
Consequential amendment.
Section 91
Consequential amendment.
Section 92
Consequential amendment.
Section 93
Consequential amendment.
Section 94
Consequential amendment.
Section 95
Consequential amendment.
Section 96
Consequential amendment.
Section 97
Consequential amendment.
Section 98
Consequential amendment.
Section 99
Consequential amendment.
Section 100
Consequential amendment.
Section 101
Consequential amendment.
Section 102
Consequential amendment.
Section 103
Consequential amendment.
Section 104
Consequential amendment.
Section 105
Consequential amendment.
Section 106
Consequential amendment.
Section 107
Consequential amendment.
Section 108
Consequential amendment.
Section 109
Consequential amendment.
Section 110
Consequential amendment.
Section 111
The existing provision is as follows:
124(1) Where a take-over bid has been made, a directors’ circular
shall be prepared and delivered by the board of directors of an offeree
issuer to every person to whom a take-over bid must be delivered under
paragraph 120(a) not later
than 15 days after the date of the bid.
124(2) The board of directors shall include in a directors’ circular
either
(a) a recommendation to accept or to reject a take-over
bid and the reasons for their recommendation, or
(b) a statement that they are unable to make or are not
making a recommendation and the reasons that they are unable to make
or are not making a recommendation.
124(3) An individual director or officer may recommend acceptance or
rejection of a take-over bid if the director or officer delivers with
the recommendation a circular prepared in accordance with the regulations.
124(4) Where a board of directors is considering recommending acceptance
or rejection of a take-over bid, it shall, at the time of delivering
a directors’ circular, advise the security holders of this fact
and may advise them not to tender their securities until further communication
is received from the directors.
124(5) Where subsection (4) applies, the board of directors shall deliver
the recommendation or the decision not to make a recommendation at
least 7 days before the scheduled expiry of the period during which
securities may be deposited pursuant to the bid.
124(6) Where, before the expiry of a take-over bid or after the expiry
of the bid but before the expiry of all rights to withdraw the securities
that have been deposited pursuant to the bid,
(a) a change has occurred in the information contained in
a directors’ circular or in any notice of change in a directors’
circular that would reasonably be expected to affect the decision
of the holders of the securities to accept or reject the bid, the
board of directors of the offeree issuer shall without delay deliver
a notice of the change to every person to whom the circular was required
to be delivered disclosing the nature and substance of the change,
or
(b) a change has occurred in the information contained in
an individual director’s or officer’s circular or any
notice of change in the individual director’s or officer’s
circular that would reasonably be expected to affect the decision
of the holders of the securities to accept or reject the bid, other
than a change that is not within the control of the individual director
or officer, as the case may be, the individual director or officer,
shall without delay deliver a notice of change in relation to it to
the board of directors.
124(7) Where an individual director or officer submits a circular under
subsection (3) or a notice of change under paragraph (6)(b) to the board of directors, the
board, at the offeree issuer’s expense, shall deliver a copy
of the circular or notice to the persons referred to in subsection
(1).
124(8) A directors’ circular, an individual
director’s or officer’s circular and a notice of change
shall be in the form prescribed by regulation and shall contain the
information required by this Part and the regulations.
Section 112
Consequential amendment.
Section 113
Consequential amendment.
Section 114
Consequential amendment.
Section 115
The existing provision is as follows:
126(1) Every offeror that acquires beneficial ownership of, or the power
to exercise control or direction over, or securities convertible into,
voting or equity securities of any class of a reporting issuer that,
together with such offeror’s securities of that class, would
constitute 10% or more of the outstanding securities of that class,
(a) shall without delay issue and file a news release
containing the information prescribed by regulation, and
(b) shall, within 2 business days after issuing and filing
the news release under paragraph (a), file a report containing the same information as is contained
in the news release.
126(2) Where an offeror is required to file a report under subsection
(1) or a further report under this subsection and the offeror or any
person acting jointly or in concert with the offeror acquires beneficial
ownership of, or the power to exercise control or direction over,
or securities convertible into, an additional 2% or more of the outstanding
securities of the class or there is a change in any other material
fact in such a report, the offeror
(a) shall without delay issue and file a news release containing
the information prescribed by regulation, and
(b) shall, within 2 business days after issuing and filing
the news release under paragraph (a), file a report containing the same information as is contained
in the news release.
126(3) During the period beginning on the occurrence of an event in
respect of which a report or further report is required to be filed
under this section and ending on the expiry of one business day after
the date that the report or further report is filed, neither the offeror
nor any person acting jointly or in concert with the offeror shall
acquire or offer to acquire beneficial ownership of any securities
of the class in respect of which the report or further report is required
to be filed or any securities convertible into securities of that
class.
126(4) Subsection (3) does not apply to an
offeror that is the beneficial owner of, or has the power to exercise
control or direction over, securities that, together with such offeror’s
securities of that class, constitute 20% or more of the outstanding
securities of that class.
Section 116
Consequential amendment.
Section 117
Consequential amendment.
Section 118
Consequential amendment.
Section 119
Consequential amendment.
Section 120
(a) Consequential amendment.
(b) Consequential amendment.
(c) Consequential amendment.
Section 121
(a) Consequential amendment.
(b) Consequential amendment.
(c) Consequential amendment.
(d) The existing provision is
as follows:
(f) respecting any matter not referred to in paragraphs
(a) to (e) that the Court of Queen’s
Bench considers proper.
Section 122
Consequential amendment.
Section 123
Consequential amendment.
Section 124
Consequential amendment.
Section 125
Consequential amendment.
Section 126
Consequential amendment.
Section 127
Consequential amendment.
Section 128
Consequential amendment.
Section 129
Consequential amendment.
Section 130
Consequential amendment.
Section 131
The existing provision is as follows:
135(1) Unless exempted under the regulations, a person who becomes an
insider of a reporting issuer, other than a mutual fund, shall, within
the period prescribed by regulation, file a report prepared in accordance
with the regulations disclosing, as of the day on which the person
became an insider, any direct or indirect beneficial ownership of
or control or direction over securities of the reporting issuer.
135(2) An insider who has filed or is required to file a report under
this section and whose direct or indirect beneficial ownership of
or control or direction over securities of the reporting issuer changes
from that shown or required to be shown in the report or in the latest
report filed by the person under this section shall, within the period
prescribed by regulation, file a report prepared in accordance with
the regulations that indicates the direct or indirect beneficial ownership
of or control or direction over securities of the reporting issuer
as of the day on which the change took place and that indicates the
change or changes that occurred.
135(3) A person who becomes an insider of a reporting issuer by reason
of subsection 1(8) or (9) shall, within the period prescribed by regulation,
file the reports required by subsections (1) and (2) for the previous
6 months or such shorter period that he or she was a director or officer
of the reporting issuer.
135(4) For the purpose of reporting under this section, ownership shall
be deemed to pass at such time as an offer to sell is accepted by
the purchaser or the purchaser’s agent or an offer to buy is
accepted by the vendor or the vendor’s agent.
Section 132
Consequential amendment.
Section 133
Consequential amendment.
Section 134
Consequential amendment.
Section 135
The existing provision is as follows:
137(1) No mutual fund in New Brunswick shall knowingly make an investment
by way of loan to
(a) any officer or director of the mutual fund, its mutual
fund manager or its distribution company or an associate of any of
them, or
(b) any individual, if the individual or an associate of
the individual is a substantial security holder of the mutual fund,
its mutual fund manager or its distribution company.
137(2) No mutual fund in New Brunswick shall knowingly make an investment
(a) in any person who is a substantial security
holder of the mutual fund, its mutual fund manager or its distribution
company,
(b) in any person in whom the mutual fund, alone or together
with one or more related mutual funds, is a substantial security holder,
or
(c) in an issuer in which
(i) any officer or director of the mutual
fund, its mutual fund manager or its distribution company or an associate
of any of them has a significant interest, or
(ii) any person who is a substantial security
holder of the mutual fund, its mutual fund manager or its distribution
company has a significant interest.
Section 136
Consequential amendment.
Section 137
Consequential amendment.
Section 138
Consequential amendment.
Section 139
Consequential amendment.
Section 140
Consequential amendment.
Section 141
Consequential amendment.
Section 142
Consequential amendment.
Section 143
The existing provision is as follows:
141(1) No mutual fund shall make any investment in consequence of which
a related person of the mutual fund will receive any fee or other
compensation except fees paid pursuant to a contract which is disclosed
in any preliminary prospectus or prospectus, or any amendment to either
of them, that is filed by the mutual fund and in respect of which
a receipt is issued by the Executive Director.
141(2) The Commission may, on the application of a mutual fund and where
the Commission is satisfied that it would not be prejudicial to the
public interest to do so, order, subject to such terms and conditions
as the Commission considers appropriate, that subsection (1) does
not apply to the mutual fund.
Section 144
Consequential amendment.
Section 145
The existing provision is as follows:
142(1) A person responsible for the management of a mutual fund shall
exercise the powers and discharge the duties of the person’s
office honestly, in good faith and in the best interests of the mutual
fund, and shall, in exercising such powers and discharging such duties,
exercise the degree of care, diligence and skill that a reasonably
prudent person would exercise in the circumstances.
142(2) For the purposes of subsection (1), a person is responsible for
the management of a mutual fund if the person has a legal power or
right to control the mutual fund or if in fact the person is able
to do so.
Section 146
Consequential amendment.
Section 147
Consequential amendment.
Section 148
Consequential amendment.
Section 149
Consequential amendment.
Section 150
Consequential amendment.
Section 151
Consequential amendment.
Section 152
Consequential amendment.
Section 153
Consequential amendment.
Section 154
Consequential amendment.
Section 155
(a) The existing provision is
as follows:
147(1) In this section, “person in a special relationship with
a reporting issuer” means
(a) a person who is an insider, affiliate or associate of
(i) the reporting issuer,
(ii) a person who is proposing
to make a take-over bid, as defined in section 106, for the securities
of the reporting issuer, or
(iii) a person who is proposing to become
a party to a reorganization, amalgamation, merger or arrangement or
similar business combination with the reporting issuer or to acquire
a substantial portion of its property,
(b) a person who is engaging in or proposes to engage in
any business or professional activity with or on behalf of the reporting
issuer or with or on behalf of a person described in subparagraph
(a)(ii) or (iii),
(c) a person who is a director, officer or employee of the
reporting issuer or of a person described in subparagraph (a)(ii) or (iii) or paragraph (b),
(d) a person who learned of a material fact or material
change with respect to the reporting issuer while the person was a
person described in paragraph (a), (b) or (c), or
(e) a person who learns of a material fact or material change
with respect to the reporting issuer from any other person described
in this subsection, including a person described in this paragraph,
and knows or ought reasonably to have known that the other person
is a person in such a relationship.
(b) The existing provision is
as follows:
147(2) No person in a special relationship with a reporting issuer shall
purchase or sell securities of the reporting issuer with the knowledge
of a material fact or material change with respect to the reporting
issuer that has not been generally disclosed.
(c) Consequential amendment.
(d) Consequential amendment.
(e) New provision.
(f) Consequential amendment.
(g) Consequential amendment.
Section 156
New provisions.
Section 157
(a) Consequential amendment.
(b) Consequential amendment.
(c) New provision.
Section 158
New provisions.
Section 159
(a)
i) Consequential amendment.
ii) Consequential amendment.
(b) A correction is made in
the French version.
(c)
i) A correction is made in the
French version.
ii) A correction is made in
the French version.
iii) A correction is made in
the French version.
(d) A correction is made in
the French version.
(e) A correction is made in
the French version.
(f) A correction is made in
the French version.
(g) A correction is made in
the French version.
Section 160
(a) The existing provision is
as follows:
150(1) Where, in connection with a distribution of securities, securities
are offered for sale in reliance on an exemption from section 71 that
is provided for under the regulations and that is prescribed by regulation
for the purposes of this section or in reliance on an exemption from
section 71 provided for in an order made by the Commission under section
80, and where any information relating to the offering provided to
the purchaser of the securities contains a misrepresentation, a purchaser
who purchases the securities shall be deemed to have relied on the
misrepresentation if it was a misrepresentation at the time of purchase,
and
(b) A correction is made
in the French version.
(c) A correction is made in
the French version.
Section 161
(a) Consequential amendment.
(b) A correction is made in
the French version.
(c) A correction is made in
the French version.
(d) A correction is made in
the French version.
(e) A correction is made in
the French version.
(f) A correction is made in
the French version.
(g) A correction is made in
the French version.
(h) A correction is made in
the French version.
Section 162
(a) A correction is made in
the French version.
(b) A correction is made in
the French version.
(c) A correction is made in
the French version.
(d) A correction is made in
the French version.
Section 163
(a) Consequential amendment.
(b) Consequential amendment.
(c) A correction is made in
the French version.
(d)
i) A correction is made in the
French version.
ii) Consequential amendment.
iii) Consequential amendment.
iv) A correction is made in
the French version.
(e) A correction is made in
the French version.
(f) A correction is made in
the French version.
(g) A correction is made in
the French version.
(h) Consequential amendment.
Section 164
New provisions.
Section 165
Consequential amendment.
Section 166
New provisions.
Section 167
The existing provision is as follows:
155 A purchaser of a security to whom a prospectus was required to be
sent but was not sent in compliance with subsection 88(1), a purchaser
of a security to whom an offering memorandum or an amendment to an
offering memorandum was required to be sent but was not sent in compliance
with the regulations or a security holder to whom a take-over bid
and take-over bid circular or an issuer bid and an issuer bid circular,
or any notice of change or variation to any such bid or circular,
were required to be delivered but were not delivered in compliance
with section 120 or 123 has a right of action for rescission or damages
against the dealer or offeror who failed to comply with the applicable
requirement.
Section 168
Consequential amendment.
Section 169
(a) Consequential amendment.
(b) Consequential amendment.
(c)
i) Consequential amendment.
ii) Consequential amendment.
iii) Consequential amendment.
iv) Consequential amendment.
(d) Consequential amendment.
(e) New provisions.
(f) The existing provision is
as follows:
157(6) Every person who is an insider, affiliate or associate of a reporting
issuer who
(a) sells or purchases the securities of the reporting issuer
with knowledge of a material fact or material change with respect
to the reporting issuer that has not been generally disclosed, or
(b) communicates to another person, other than in
the necessary course of business, knowledge of a material fact or
material change with respect to the reporting issuer that has not
been generally disclosed,
is accountable to the reporting issuer
for any benefit or advantage received or receivable by the person
as a result of the purchase, sale or communication, as the case may
be, unless the person proves that the person reasonably believed that
the material fact or material change had been generally disclosed.
(g) Consequential amendment.
(h) Consequential amendment.
(i) Consequential amendment.
Section 170
(a)
i) Consequential amendment.
ii) Consequential amendment.
iii) Consequential amendment.
(b) Consequential amendment.
(c)
i) Consequential amendment.
ii) Consequential amendment.
iii) Consequential amendment.
(d) Consequential amendment.
(e) Consequential amendment.
(f) Consequential amendment.
(g) Consequential amendment.
Section 171
Consequential amendment.
Section 172
Consequential amendment.
Section 173
New provisions.
Section 174
Consequential amendment.
Section 175
(a) The existing provision is
as follows:
168(1) The Commission or any member or employee of the Commission may
conduct a review of the disclosures that have been made or that ought
to have been made by a reporting issuer or mutual fund in New Brunswick,
on a basis to be determined at the discretion of the Commission or
the Executive Director.
(b) The existing provision is
as follows:
168(2) A reporting issuer or mutual fund in New Brunswick that is subject
to a review under this section shall, at such time or times as the
Commission or Executive Director requires, deliver to the Commission
or Executive Director any information and documents relevant to the
disclosures that have been made or that ought to have been made by
the reporting issuer or mutual fund.
(c) The existing provision is
as follows:
168(4) A reporting issuer or mutual fund in New Brunswick, or any person
acting on behalf of a reporting issuer or mutual fund in New Brunswick,
shall not make any representation, orally or in writing, that the
Commission has in any way passed judgment on the merits of the disclosure
record of the reporting issuer or mutual fund.
Section 176
(a) Consequential amendment.
(b)
i) Consequential amendment.
ii) The existing provision is
as follows:
(e) a manager or custodian of assets, shares or units of
a mutual fund;
(c) A correction is made in
the French version.
Section 177
Consequential amendment.
Section 178
(a) The existing provision is
as follows:
177(1) All information or evidence obtained pursuant to an investigation
under this Part, including a report referred to in section 176, is
confidential and shall not be disclosed by any person except
(a) to the person’s legal counsel,
(b) where authorized in writing by the Executive Director,
or
(c) as otherwise permitted by this Act or the regulations.
(b) New provision.
(c) Consequential amendment.
Section 179
The existing provision is as follows:
178(1) Where the Executive Director is of the opinion that it would
not be prejudicial to the public interest to do so, the Executive
Director may, on behalf of the Commission, provide information to
and receive information from other securities or financial regulatory
authorities, exchanges, self-regulatory bodies or organizations, law
enforcement agencies and other governmental or regulatory authorities,
both in Canada and elsewhere.
178(2) Any information received by the Commission under subsection (1)
is confidential and shall not be disclosed by any person except where
authorized in writing by the Executive Director.
Section 180
(a) Consequential amendment.
(b) Consequential amendment.
(c) Consequential amendment.
(d) New provision.
Section 181
Consequential amendment.
Section 182
(a)
i) The existing provision is
as follows:
(c) an order that trading in any securities, or in securities
or a class of securities specified in the order, by or of a person
cease permanently or for such period as is specified in the order;
ii) The existing provision is
as follows:
(f) if the Commission is satisfied that New Brunswick securities
law has not been complied with, an order that a release, report, preliminary
prospectus, prospectus, return, financial statement, information circular,
take-over bid circular, issuer bid circular, offering memorandum,
proxy solicitation or any other document described in the order
iii) Consequential amendment.
iv) Consequential amendment.
v) Consequential amendment.
vi) New provision.
(b) New provision.
(c) Consequential amendment.
(d) Consequential amendment.
Section 183
(a) The existing provision is
as follows:
(c) an order directing that a release, report, preliminary
prospectus, prospectus, return, financial statement, information circular,
take-over bid circular, issuer bid circular, offering memorandum,
proxy solicitation or any other document described in the order
(b) The existing provision is
as follows:
(o) an order requiring the person to disgorge to the Minister
any amounts obtained as a result of the non-compliance with New Brunswick
securities law;
(c) Consequential amendment.
Section 184
New provisions.
Section 185
Consequential amendment.
Section 186
Consequential amendment.
Section 187
(a) The existing provision is
as follows:
191(1) Notwithstanding any other provision of this Act, a proceeding
under this Act may be disposed of by
(a) an agreement approved by the Commission,
(b) a written undertaking made by a person to the Commission
that has been accepted by the Commission, or
(c) if the parties have waived the hearing or compliance
with any requirement of this Act, a decision of the Commission made
without a hearing or without compliance with the requirement of this
Act.
(b) Consequential amendment.
Section 188
Consequential amendment.
Section 189
(a) The existing provision is
as follows:
195(1) A person directly affected by a final decision of the Commission,
other than a decision under section 55 or 80, may with leave of a
judge of the Court of Appeal appeal to the Court of Appeal within
30 days after the later of the making of the final decision and the
issuing of the reasons for the final decision.
(b) Consequential amendment.
(c) New provision.
Section 190
New provisions.
Section 191
Consequential amendment.
Section 192
(a) Consequential amendment.
(b) New provisions.
Section 193
The existing provision is as follows:
199(4) If, on 3 consecutive occasions, information or material sent
by an issuer to a security holder in accordance with paragraph (1)(b) is returned, the issuer is not
required to send any further information or material to the security
holder until the security holder informs the issuer in writing of
the security holder’s new address.
Section 194
(a)
i) Consequential amendment.
ii) New regulation-making authority.
iii) The existing provision
is as follows:
(k) respecting requirements for the disclosure or provision
of information or material to the public, the Commission or the Executive
Director by registrants, including without limiting the generality
of the foregoing, authorizing the Commission to require the provision
of such information or material as the Commission considers appropriate
in the form it requires;
iv) A correction is made in
the French version.
v) New regulation-making authority.
vi) Consequential amendment.
vii) Consequential amendment.
viii) Consequential amendment.
ix) Consequential amendment.
x) The existing provision is
as follows:
(ii) varying the requirements under this Act to facilitate,
expedite or regulate the distribution of securities or the issuing
of receipts, including without limiting the generality of the foregoing,
by establishing
(i) requirements in respect of distributions
of securities by means of a prospectus incorporating other documents
by reference,
(ii) requirements in respect of distributions
of securities by means of a simplified or summary prospectus or other
form of disclosure document,
(iii) requirements in respect of distributions
of securities on a continuous or delayed basis,
(iv) requirements in respect of pricing
of distributions of securities after the issuance of a receipt for
the prospectus filed in relation to the securities,
(v) procedures for the issuing of receipts
for prospectuses after expedited or selective review,
(vi) provisions for the incorporation
by reference of certain documents in a prospectus and the effect,
including from a liability and evidentiary perspective, of modifying
or superseding statements,
(vii) provisions for eligibility requirements
to obtain a receipt for, or distribute under, a particular form of
prospectus and the loss of that eligibility, and
(viii) provisions for varying withdrawal
rights;
xi) New regulation-making authority.
xii) New regulation-making authority.
xiii) New regulation-making
authority.
xiv) Consequential amendment.
xv) Consequential amendment.
xvi) New regulation-making authority.
xvii) The existing provision
is as follows:
(tt) requiring issuers or other persons to comply, in whole
or in part, with Part 7 or regulations or rules made under paragraph
(ss);
xviii) The existing provision
is as follows:
(uu) respecting the circumstances under which an issuer or
class of issuers that would not otherwise be a reporting issuer shall
be a reporting issuer;
xix) Consequential amendment.
xx)
A) Consequential amendment.
B) Consequential amendment.
C) Consequential amendment.
D) New regulation-making authority.
xxi) The existing provision
is follows:
(yy) respecting requirements for the validity and solicitation
of proxies and varying any requirements under this Act in relation
to the validity and solicitation of proxies;
xxii) Consequential amendment.
xxiii) New regulation-making
authority.
xxiv)
A) The existing provision is
as follows:
(eee) regulating mutual funds and non-redeemable investment
funds and the distribution and trading of the securities of the funds,
including without limiting the generality of the foregoing,
B) The existing provision is
as follows:
(vi) prescribing requirements in relation
to the determination of the net asset value of mutual funds and authorizing
the Commission to make that determination,
C) The existing provision is
as follows:
(ix) respecting sales charges imposed
by a distribution company or contractual plan service company under
a contractual plan on purchasers of shares or units of a mutual fund,
and commissions or sales incentives to be paid to registrants in connection
with the securities of a mutual fund,
D) The existing provision is
as follows:
(xi) prescribing procedures applicable
to mutual funds, registrants and any other person in respect of sales
and redemptions of mutual fund securities and payments for sales and
redemptions, and
E) The existing provision is
as follows:
(xii) prescribing requirements in relation
to promoters, advisers or persons who administer or participate in
the administration of the affairs of mutual funds or non-redeemable
investment funds;
F) New regulation-making authority.
xxv) The existing provision
is as follows:
(jjj) varying the application of this Act to foreign issuers
to facilitate distributions, compliance with requirements applicable
or relating to reporting issuers and the making of take-over bids,
issuer bids, insider bids, going-private transactions and related
party transactions where the foreign issuers are subject to requirements
of the laws of other jurisdictions that the Commission considers are
adequate in light of the purposes and principles of this Act;
xxvi) New regulation-making
authority.
xxvii) Consequential amendment.
xxviii) New regulation-making
authority.
xxix) New regulation-making
authority.
xxx) Consequential amendment.
xxxi) New regulation-making
authority.
xxxii) New regulation-making
authority.
xxxiii) The existing provision
is as follows:
(sss) varying the requirements under this Act to permit or
require methods of filing or delivery, to or by the Commission, issuers,
registrants, security holders or others, of documents, information
or other communications required under or governed by New Brunswick
securities law;
xxxiv) The existing provision
is as follows:
(vvv) prescribing the circumstances under which persons shall
be deemed to have signed or certified documents on an electronic or
computer-based system for any purpose of this Act;
xxxv) Consequential amendment.
xxxvi) New regulation-making
authority.
xxxvii) Consequential amendment.
(b)
i) Consequential amendment.
ii) Consequential amendment.
iii) Consequential amendment.
(c) Consequential amendment.
(d) Consequential amendment.
Section 195
The existing provision is as follows:
204(1) No agreement, memorandum of understanding or arrangement between
the Commission and another securities or financial regulatory authority,
any self-regulatory organization or body or any jurisdiction shall
come into effect without the approval of the Minister.
204(2) An agreement, memorandum of understanding or arrangement referred
to in subsection (1) comes into effect on the day that the Minister
approves it, unless the Minister specifies an effective date.
Section 196
(a) Consequential amendment.
(b) The existing provision is
as follows:
208 Except where exemption applications are otherwise provided for in
New Brunswick securities law, the Commission may, on the application
of an interested person or on the Commission’s own motion, and
if in the opinion of the Commission it would not be prejudicial to
the public interest, make an order, subject to such terms and conditions
as it considers appropriate, exempting, in whole or in part, a person
or class of persons from any requirement of New Brunswick securities
law.
(c) New provision.
Section 197
(a) Consequential amendment.
(b) Consequential amendment.
(c) Consequential amendment.
(d) Consequential amendment.
(e) Consequential amendment.
(f) Consequential amendment.
(g) Consequential amendment.
(h) Consequential amendment.
Section 198
Commencement provision.