New Brunswick has passed legislative reforms that beef up investor protection by enhancing securities enforcement and enabling the adoption of a dispute resolution mechanism with binding authority.
In a notice issued Tuesday, the Financial and Consumer Services Commission of New Brunswick (FCNB) reported that a bill, which introduces a number of reforms to modernize its securities law and enhance confidence in the capital markets, has received Royal Assent.
Among other things, the bill boosts the maximum penalties for regulatory violations from $1 million to $5 million, in an effort to “strengthen compliance and deter misconduct.”
It also expands the regulator’s authority to issue administrative penalties for minor offences, without going through a full enforcement proceeding.
Under that provision, the FCNB would be able to order penalties of up to $10,000 against individuals, and $25,000 against a firm.
The bill also includes provisions that specifically prohibit “misleading or untrue” statements that are expected to have a significant impact on stock prices.
As well, it creates the authority for the recognition of an independent dispute resolution service that deals with investor complaints, and has the ability to order compensation to harmed investors.
The amendments will also allow the FCNB “to better respond to and foster evolving capital markets,” the notice said.
The regulator said that rules to implement the legislative amendments “will be developed in due course,” and that they will go through the public comment process.