Back to Basics: The Nova Scotia Securities Commission

Submitted by nsscadmin on Mon, 10/07/2019 - 09:15

The Nova Scotia Securities Commission regulates all securities and derivatives in Nova Scotia. Securities can include investments like bonds, stocks and mutual funds, while derivatives are more complex investments such as forward and future contracts.

The Commission is divided into four main branches:

Policy and Market Regulation

Investor Education

Corporate Finance

Enforcement.

Here’s a brief rundown of what each branch dies.

Policy and Market Regulation oversees the development of all legislation, rules and policies around securities and derivatives in Nova Scotia. They also oversee the registration of all dealers, advisers and investment fund managers in the province, and the compliance of the firms that employ them to make sure they are complying with Nova Scotia securities laws.

Investor Education develops and delivers all investor education programs and campaigns for the Commission. One of the Commission’s mandates is to help investors make informed decision through education, warnings and alerts. Investor education handles all public education initiatives, online content for the Commission's website and social media, and develops industry partnerships with other organizations that deal with financial literacy.

Corporate finance oversees the regulation of reporting issuers in Nova Scotia. This includes public companies that list Nova Scotia as their principal regulator and CEDIFs. Private companies are also subject to regulation. Corporate finance monitors all on-going disclosure of information requirements for these issuers, including financial statements, press releases and material change reports.

Enforcement enforces the securities act in Nova Scotia. They investigate and prosecute any violation of Nova Scotia securities law. One thing to remember, they cannot criminally charge anyone. They are able to issue sanctions and penalties to anyone who has violated the securities act. All criminal proceeds must go through local police, RCMP or the public prosecution service.

Failure to file annual financial statements.
Failure to file interim financial statements.
Failure to file an annual or interim management’s discussion and analysis (MD&A) or an annual or interim management report of fund performance (MRFP).
Failure to file an Annual Information Form (AIF).
Failure to file a certification of annual or interim filings required by Multilateral Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (MI 52-109).
Failure to file required proxy materials or a required information circular.
Failure to file an issuer profile supplement on the System for Electronic Disclosure by Insiders (SEDI).
Failure to file a material change report.
Failure to provide a written update after filing a confidential report of a material change.
Failure to file a business acquisition report.
Failure to file annual oil and gas disclosure prescribed by National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities (NI 51-101) or technical reports for a mineral project required under NI 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).
Failure to file a mandatory news release.
Failure to file corporate governance disclosure as required by national Instrument 58-101 Disclosure of Corporate Governance Practices (NI 58-101).
Failure to file audit committee disclosure as required by Multilateral Instrument 52-110 Audit Committees (MI 52-110) or BC Instrument 52-509 Audit Committees.
Failure to include disclosure in an issuer’s MD&A relating to disclosure controls and procedures and their direct effectiveness that is referred to in a certificate filed under MI 52-109.
Financial statements of the reporting issuer, or the auditors’ report accompanying the financial statements, do not comply with the requirements of NI 51-102 Continuous Disclosure Obligations (NI 51-102), National Instrument 81-106 Investment Fund Continuous Disclosure (NI 81-106) or National Instrument 52-107 Acceptable Accounting Principles, Auditing Standards and Reporting Currency (NI 52-107).
The reporting issuer has acknowledged that its financial statements, or the auditors’ report accompanying the financial statements, may no longer be relied upon.
The reporting issuer’s AIF, MD&A, MRFP, information circular, or business acquisition reports do not contain information for each of the content items required by NI 51-102 or NI 81-106.
The reporting issuer’s technical disclosure or other reports do not comply with the disclosure requirements of NI 43-101 or 51-101.
Failure to pay a fee required by the Act or the regulations.
Failure to comply with any other requirement related to continuous disclosure.