Fall 2002 Report

Unprecedented Power for Manitoba Securities Regulator

On August 8, 2002, the Manitoba government passed legislation amending The Securities Act of Manitoba. These amendments are expected to come into force prior to the end of this year.

One of the key amendments empowers the Manitoba Securities Commission (the “Commission”) to order parties to an administrative hearing to pay restitution. That is, the Commission will have the authority to order a person to pay compensation to a complainant for financial loss suffered by the complainant as a result of a breach of Manitoba securities laws. The maximum payment that may be ordered by the Commission is $100,000 per complainant.

If a person breaches Manitoba securities laws in the course of their employment, the Commission may order the employer to be jointly and severally liable to pay restitution to the complainant. The restitution power is in addition to the existing powers of the Commission, which include the power to ban a person from participating in Manitoba's capital markets, the power to fine, and the power to freeze property and bank accounts. Upon proclamation of the amending legislation, the Commission will be the only securities regulator in Canada with the power to order restitution for loss suffered as a result of a breach of securities laws. Elsewhere in Canada, only courts have such a power.

Richmond J. Bayes is a member of the Securities Law Practice Group at Aikins, MacAulay & Thorvaldson which provides a wide range of services in the field of securities law. Contact any member of the Securities Law Practice Group for further assistance in understanding The Securities Amendment Act and what it may mean for you.