Securities Provision Enhances Investor Protection

The province has proclaimed sections of the Securities Act that will enhance legal protection for Nova Scotia investors.

"We are improving legal protection for Nova Scotians making investments through dealers or brokers," said Angus MacIsaac, Minister responsible for the Securities Act.

"More investors will be able to hold companies responsible for the accuracy and completeness of the information they provide."

Amendments to the Securities Act in November 2006 included provisions for civil liability for secondary market disclosure.

The secondary market includes everyday trading by investors in the shares of a public company, usually in the stock exchange.

The new provisions give investors who buy or sell publically traded securities broader rights to sue if a public company has misrepresented or failed to disclose information that affects the value of their investment.

The changes are consistent with investor-protection measures introduced by most other Canadian jurisdictions. They build on measures already in place to protect investors.

Cabinet approved the proclamation, effective Nov. 15.