The latest version of the OSC Bulletin reports on proposed amendments to the Ontario Securities Act that were tabled earlier this month by the provincial government.

On Nov. 2, 2005, proposed amendments to the Securities Act were introduced by the Minister of Finance as part of the government’s Fall 2005 Budget Bill, Bill 18.

Among the most significant changes being proposed to the Securities Act are amendments to empower a standing or select committee of the legislative assembly to review the Ontario Securities Commission’s annual report and to report the committee’s opinion and recommendations to the assembly.

The amendments also give the OSC a variety of powers, including:

  • the power to make a fund governance rule; the authority to make corporate governance rules;
  • the power to order a person to resign as a director or officer of a registrant or fund manager;
  • the authority to prohibit a person or company from becoming a registrant, fund manager or promoter; and
  • the power to prohibit the acquisition of securities by a person or company for a given period of time.

The proposed amendments also:

  • require recognition for a firm seeking to act as a clearing agency;
  • give the OSC rulemaking authority to prescribe activities that are not included in the definition of “solicit” and “solicitation” regarding proxy solicitation; and
  • grant the OSC the authority to exempt persons or companies making a solicitation from sending an information circular to security holders whose proxy is solicited.

All of the proposed Securities Act amendments (with the exception of the amendment dealing with mandatory recognition of clearing agencies) will come into force on Royal Assent of Bill 18. The amendments dealing with mandatory recognition of clearing agencies will come into force on a day to be proclaimed by the Lieutenant Governor in Council.