Our first regulatory review of 2023 looks at all releases and notices issued by the Nova Scotia Securities Commission and the Canadian Securities Administrators (CSA) since January. It’s been a busy start to 2023 for securities regulators. In case you missed any of these releases or notices here’s a quick rundown on what they meant for issuers and investors and links to the documents, where you can find the full details.
New Self-Regulatory Organization of Canada (New SRO) and new Canadian Investor Protection Fund (CIPF) officially launched in January 3, 2023, marking completion of the CSA’ plan to create a new, single self-regulatory organization and an integrated investor protection fund.
The Commission issued an urgent warning about a widespread type of scam that is victimizing numerous Nova Scotians, other Canadians and U.S. residents and causing substantial losses, including individual losses of hundreds of thousands of dollars.
January 10, 2023 - CSA Investor Alert: Canadian securities regulators warn the public about impersonation scams
The CSA warned the public to be vigilant for unsolicited communications that come from scammers posing as CSA staff or staff of CSA members.
The CSA published an exemption for reporting issuers incorporated under the Canada Business Corporations Act (CBCA) from the form of proxy requirement for the uncontested election of directors.
The Commission delivered its decision on Adrian Saturley and Adonis Asset Management’s application for a hearing and review of a Director’s Decision issued on February 14, 2022. The Director refused to grant registration to Adonis Asset Management (Adonis) as a portfolio manager and Saturley as the sole Advising Representative, Chief Compliance Officer, and Ultimate Designated Person of Adonis. The Commission upheld the Director's Decision.
Further to its update on December 12, 2022, the CSA published a notice describing enhanced investor protection commitments it expects from crypto asset trading platforms (CTPs) operating in Canada.
February 23, 2023 - Canadian securities regulators encourage market participants to prepare for the cessation of CDOR
The CSA encouraged market participants to prepare for the upcoming cessation of the Canadian Dollar Offered Rate (CDOR).
During Fraud Prevention Month in March, the Commission reminded investors to watch out for the red flags of crypto-related scams. Earlier this year the Commission issued an alert warning Nova Scotians about a crypto-related pig butchering scam that has become very prevalent in Nova Scotia and throughout North America and has led to substantial losses for some Nova Scotians.
The CSA is launching SEDAR+ on June 13, 2023. SEDAR+ is the new, web-based application for all capital market participants to file, disclose and search for public documents and information filed by issuers in Canada in accordance with applicable securities legislation.
During Fraud Prevention Month, the CSA warned Canadians of potentially misleading advice and fraudulent online investment opportunities and reminded them to research the claims before investing.
The CSA warned the public that Nova Tech Ltd (NovaTech), which operates the website www.novatechfx.com, is not registered with a securities regulator in any province or territory in Canada. This means they are not authorized to offer trading in any securities or derivatives to anyone located in Canada.
The securities regulatory authorities in Manitoba, New Brunswick, Nova Scotia, Ontario, Québec and Saskatchewan published the underlying data used to prepare the eighth annual review of women on boards and in executive officer positions.
The CSA published advance notice of adoption of rules requiring market participants to use a new national filing and information system, and to pay system fees for filing.
April 6, 2023 - Canadian securities regulators warn the public about GoldberryCo
The securities regulatory authorities in Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Quebec, Northwest Territories, Prince Edward Island and Yukon warned the public about GoldberryCo, which is operating an online investment scam targeting Canadians through the websites goldberryco.com and Goldbrco.com. GoldberryCo is not registered to sell investments in Canada.
The CSA announced that certain unregistered crypto asset trading platforms have filed an enhanced pre-registration undertaking with their principal regulator following the publication of CSA Staff Notice 21-332.
The CSA is seeking public comment on proposed amendments to corporate governance disclosure rules and policy relating to the director nomination process, board renewal and diversity. They would require disclosure on aspects of diversity beyond the representation of women, while retaining the current disclosure requirements with respect to women. In addition, the CSA is proposing changes to the corporate governance policy that would enhance the existing corporate governance guidelines relating to the director nomination process and introduce guidelines regarding board renewal and diversity.
The CSA congratulated Charles-Antoine St-Jean on his appointment as the first-ever Chair of the Canadian Sustainability Standards Board (CSSB).
The CSA published CSA Staff Notice 25- 310 2022 Annual Activities Report on the Oversight of Self-Regulatory Organizations (SROs) and Investor Protection Funds (IPFs) that summarizes key information, activities and observations related to CSA oversight of the former SROs and IPFs during the 2022 calendar year.
The CSA and the Canadian Council of Insurance Regulators (CCIR) published changes to enhance total cost reporting (TCR) disclosure for investment funds and individual segregated fund contracts. The TCR enhancements (the Enhancements) will improve the transparency of total fees and costs to holders of investment funds and segregated funds.