Provisions for financial compensation orders come into force
July 1, 2007
The Securities
Amendment Act, 2007
will come into force on July 1, 2007. The amendment act contains
new section 135.2 that gives the Commission the power,
as part of its jurisdiction at a hearing, to order that a person
or company who has contravened Saskatchewan securities laws, repay
financial losses to investors of up to $100,000 to each investor.
The provisions are based on those that have been in force in
Manitoba since 2003.
Staff Notice 11-704 Claims for Financial
Compensation sets out more information.
Local Policy 12-602 Procedure on Hearings and Reviews Before
the Commission has been amended to include new Part 3A that
sets out procedures at hearings where there are claims for
financial compensation orders.
Subsection 135.2(7) will not be proclaimed in force. Subsection
(7) provides that the
Commission shall not make an order if the claimant has commenced
an action or proceeding for compensation for the same loss. It
has been determined that claimants should not be confined to only
making a claim for financial compensation to the Commission. They
should continue to have the right to pursue their claims in the
courts because:
·
the Commission may find that there has been no contravention of
Saskatchewan securities laws, and can therefore not make a
compensation order. The claimant should be entitled to entitled
to pursue their claim in the courts based on the common law.
·
they should be entitled to pursue a claim for losses over
$100,000.
June 27, 2007
Contact:
Director, Securities Division
(306) 787 5842
