November 6, 2006
Selinger Announces Investor Protection
Amendments to increase investor protection and harmonize securities legislation are now in effect, Finance Minister Greg Selinger announced today.
“These amendments will increase the amount of protection for investors and give the Manitoba Securities Commission clear authority to appoint or remove company directors where there is a risk to the public,” said Selinger. “By creating civil liability rights, investors who trade on the stock exchange and in secondary markets will generally have greater protection where there has been a misrepresentation.”
The amendments to the Securities Amendment Act harmonize Manitoba laws with those of other provinces in important areas such as the rights of investors who purchase securities under offering memorandums and the requirements of continuous financial disclosure of public companies. The amendments will implement new investor protection measures including increasing fines for offences under the Securities Act.
Amendments giving investors rights to bring legal action for misrepresentations by issuers in public statements or documents will come into effect on Jan. 1. Ontario is presently the only other jurisdiction that has this kind of liability legislation.
Fines will increase to a maximum of $5 million for breaches of the Securities Act and are in keeping with fines in other Canadian jurisdictions.
Selinger noted the legislation supports the work of the Council of Minister of Securities Regulation to improve securities regulation and enhance investor protection.
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