Legislation Opens One-window Access to Securities

ENVIRONMENT/LABOUR--Legislation Opens One-window Access to Securities

Nova Scotia's securities laws will be in line with those in other Canadian jurisdictions, as a result of changes proposed today, April 25, to the Nova Scotia Securities Act. Investors will also be better protected with the new changes that allow for mutual enforcement of orders and decisions.

"This update to the securities legislation is a win-win situation for both investors and businesses," said Minister of Environment and Labour Kerry Morash. "The changes to the Securities Act streamline processes to make it easier for companies to do business here in Nova Scotia, and provide improved protection for consumers by strengthening enforcement and compliance powers."

Changes to the Nova Scotia Securities Act include:

• the creation of a one-window passport system for Canadian securities jurisdictions. Businesses would be able to access capital markets in participating provinces and territories after registering in just one jurisdiction. Decisions would be more timely and the processes more efficient and seamless to the market participant;
• further harmonization of Nova Scotia's securities laws with those of other jurisdictions to provide more consistent regulation across Canada;
• enhanced enforcement and compliance powers to strengthen investor protection. It will make it easier to enforce orders and decisions of other provinces' securities commissions in Nova Scotia, and make it easier for other jurisdictions to enforce the Nova Scotia Securities Commission's decisions and orders.

The legislation fulfills Nova Scotia's commitment to the Provincial/Territorial Memorandum of Understanding Regarding Securities Regulation signed on April 7.

Mr. Morash said the changes will inspire increased investor confidence. He said Nova Scotia is committed to working with other provinces and territories to improve securities regulation to support competitiveness, innovation and growth. Efficient, harmonized and cost-effective securities regulation will help improve the industry nationwide.

Once the legislation is enacted, the passport system will allow Nova Scotia to accept the work done by securities regulators in other provinces; in turn, other provinces will be able to accept Nova Scotia's work.

"Amending the Securities Act is a simple first step, but an important one to start the passport process," said Mr. Morash. "That process will significantly cut down on duplication and promote greater sharing of authority among regulators. That means market participants will be able to do business across most of the country by dealing with only one regulator and one jurisdiction's rules."

Consultation on the one-window passport system began with Canadian Securities Administrators Blueprint for Uniform Securities Laws issued in December 2003. The passport system will have highly harmonized laws across Canada by 2006.