February 24, 2003
New legislation is now in effect making Manitoba the first Canadian province to give investors greater protection from misconduct or illegal trading practices, Finance Minister Greg Selinger announced today.
Amendments to the Securities Act give the Manitoba Securities Commission the power to order repayment when investors lose money because of the improper or illegal conduct of others, including investment advisers. The changes mean that investors in these situations can avoid costly legal action to recover their losses.
"This legislation--a first in Canada--gives the Securities Commission the power to order repayment to those who have lost money because of the misconduct of others," said Selinger. "We believe this is an important complement to the powers the commission has to discipline those who contravene securities legislation and industry rules and practices."
If an investor chooses to make a claim, the commission can now order repayment of up to $100,000 from an individual who is registered to sell securities as well as that individual's employer. Someone who is not registered but is acting in the capacity of a trader or adviser on investment products can also be ordered to repay the investor.
Following a hearing, if the commission finds that there has been improper or illegal conduct, a commission panel can order penalties, including reprimands, fines, suspensions or cancellation of registration to prevent further securities trading. The order may also include compensation for financial loss.
The Manitoba Securities Commission is a special operating agency responsible for administering and enforcing the Securities Act, the Real Estate Brokers Act, the Mortgage Dealers Act and the Commodity Futures Act. The commission works in the public interest to protect Manitoba investors and to facilitate the raising of capital while maintaining fairness and integrity in the securities marketplace. The chair of the commission reports to the legislature through the minister of finance.
More information about the Manitoba Securities Commission is available at http://www.msc.gov.mb.ca.
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