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Canadian Securities Regulatory Monitor News and Insight

Category Archives: AMF

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Quebec AMF Fintech Initiatives: Fintech Lab and Partnership with R3

Posted in AMF, Fintech

On April 27, 2017, the Autorité des marchés financiers (AMF) announced the creation of the Fintech Lab: a think tank equipped with exploration tools aimed at exploring the current and potential applications of new technologies by entities regulated by the AMF (e.g. financial cooperatives and other deposit-taking institutions, insurers, and market infrastructures such as stock exchanges) or in connection with activities regulated by the AMF (e.g. the business of trading in securities or advising in relation to trading in securities) and studying new technologies.… Continue Reading

CSA’s 2016 Enforcement Report: insights into securities regulatory activity

Posted in AMF, CSA, Enforcement, Litigation, OSC

The Canadian Securities Administrators (CSA) recently released its annual report on the enforcement activities of its members. The CSA is an umbrella group of Canada’s securities regulators.

Summary of 2016 Results[1]

Generally, enforcement and pre-enforcement activity, and monetary sanctions imposed by regulators decreased compared to 2015 but were higher than they were in 2014.

2016 2015 2014
Monetary Sanctions $62,148,866 $138,298,796 $58,239,156
 
Restitution, Compensation and Disgorgement $349,654,379 $111,651,429 $65,717,760
 
Commenced Cases (by notice of hearing, statement of allegations, or sworn Information) 56 108 105
 
Individual Respondents 72 165 189
 
Company Respondents 72 101 92
 
Most prevalent violations Illegal Distributions
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Modifications proposées au Règlement sur les instruments dérivés du Québec

Posted in AMF

Le 1er février 2017, l’Autorité des marchés financiers (AMF) a publié pour consultation des modifications proposées (Modifications proposées) au Règlement sur les instruments dérivés du Québec.

Les Modifications proposées portent sur trois questions : l’exigence de transmettre des informations relativement aux opérateurs en couverture, l’interdiction d’offrir des options binaires aux personnes physiques et l’obligation pour les personnes agrées de présenter leurs états financiers.

Exigence de transmettre des informations relativement aux opérateurs en couverture

La Loi sur les instruments dérivés du Québec prévoit une exemption de presque toutes ses exigences lorsque des contreparties qualifiées participent à des activités ou à … Continue Reading

Proposed Amendments to Quebec Derivatives Regulation

Posted in AMF

The Autorité des marchés financiers (AMF) published for comments on February 1, 2017 proposed amendments (Proposed Amendments) to the Derivatives Regulation (Québec) (“QDR”).

The Proposed Amendments address three matters: filing requirements when dealing with hedgers, prohibiting the offering of binary options to individuals, and reporting obligations of qualified persons.

Filing Requirements When Dealing With Hedgers

The Quebec Derivatives Act (“QDA”) provides an exemption from almost all of its requirements when accredited counterparties engage in activities or transactions in over-the-counter (“OTC”) derivatives. Accredited counterparties as defined in the QDA are in general institutional investors such … Continue Reading

Compensation obligatoire des dérivés de gré à gré par contrepartie centrale au Canada – Mise à jour

Posted in AMF, CSA

En 2015, les Autorités canadiennes en valeurs mobilières (ACVM) ont proposé de rendre obligatoire la compensation par contrepartie centrale de certaines transactions normalisées de dérivés de gré à gré en vue d’accroître la transparence sur le marché des dérivés de gré à gré et d’atténuer davantage le risque systémique avec le Règlement 94-101 sur la compensation obligatoire des dérivés par contrepartie centrale et l’Instruction générale relative au Règlement 94-101 (Règlement 94-101) ainsi que le Règlement 94-102 sur la compensation des dérivés et la protection des sûretés et des positions des clients et l’Instruction générale Continue Reading

Mandatory Central Counterparty Clearing of OTC Derivatives in Canada – Update

Posted in AMF, CSA

In 2015, the Canadian Securities Administrators (CSA) proposed mandatory central counterparty clearing of certain standardized over-the-counter (“OTC”) derivatives transactions consistent with its goal to improve transparency in the OTC derivatives market and enhance the overall mitigation of systemic risk: National Instrument 94-101 Mandatory Central Counterparty Clearing of Derivatives and its related Companion Policy 94-101CP (NI 94-101) and National Instrument 94-102 Derivatives: Customer Clearing and Protection of Customer Collateral and Positions and its related Companion Policy 94-102CP (NI 94-102).

NI 94-101 requires certain counterparties to clear specified standardized OTC derivatives through a central … Continue Reading

The AMF Launches Whistleblower Program

Posted in AMF, Industry News

On June 20, 2016, the Autorité des marchés financiers (the “AMF”), Quebec’s financial services regulatory authority, launched its Whistleblower Program. Individuals who have information about offences that have been committed contrary to the laws and regulations administered by the AMF, including the Securities Act, the Derivatives Act and others, may report such wrongdoing under the Whistleblower Program.

The major features of the program are:

  • Confidentiality – The AMF makes every effort to keep the whistleblower’s identity and the information they provide confidential;
  • No reprisal – An employer is prohibited from firing, demoting or otherwise adversely affecting
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Derivatives Update: A New Customer Clearing Rule and Changes to the Quebec Derivatives Regulation

Posted in AMF, CSA

Our Business Law and Financial Services lawyers wrote an article on a new customer clearing rule published by the Canadian Securities Administrators (CSA) called Derivatives: Customer Clearing and Protection of Customer Collateral and Positions (NI 94-102) and its related Companion Policy 94-102CP, both of which replace CSA’s 2014 Model Provincial Rule on Derivatives. The authors discuss and dissect key features of the new NI 94-102 proposal, as well as comment on the proposed amendments to the Québec Derivatives Regulation (QDR) proposed by Autorité des marchés financiers (AMF).… Continue Reading

Why Securities Regulators Can’t Collect Monetary Sanctions, and What They Plan To Do About It

Posted in AMF, CSA, Enforcement, IIROC, Litigation, OSC, Uncategorized

Securities regulators across Canada impose significant monetary sanctions against market participants each year. The CSA recently reported that provincial securities regulators collectively imposed $138.3 million in fines and administrative penalties and $111.7 million in restitution, compensation and disgorgement orders in 2015.[1] This was an increase of 102% from the previous year and the highest amount of monetary sanctions imposed since 2009.

At the same time that regulators are imposing increasing monetary sanctions, they are facing an increasing inability to actually collect these sanctions. For example, the British Columbia Securities Commission has collected less than 5% of monetary sanctions imposed … Continue Reading

Final crowdfunding rules to come into force in five provinces, including Ontario, in January 2016

Posted in AMF, Industry News, OSC

Introduction and Legislative History

After a lengthy review process beginning in 2013, the Ontario Securities Commission (the “OSC”) along with provincial securities regulators from Quebec, Manitoba, Nova Scotia and New Brunswick (with Ontario, the “Participating Jurisdictions”), have finalized amendments introducing a crowdfunding prospectus exemption and a regulatory framework for crowdfunding portals. This new crowdfunding regime (the “45-108 Regime”) will, subject to provincial Ministerial approvals, come into force on January 25, 2016 via Multilateral Instrument 45-108 (“MI 45-108”). For the OSC’s bulletin which includes Multilateral Instrument 45-108, click here. Saskatchewan, which participated in the drafting of MI 45-108, has also … Continue Reading

La probité: plus qu’un champ d’activité

Posted in AMF, Chambre de la sécurité financière, Litigation

Dans l’affaire Champagne c. CIBC[1], la Cour supérieure a été saisie d’une demande d’injonction de la Syndique de la Chambre de la sécurité financière (la « CSF ») afin d’obtenir des documents et des informations relativement à neuf employés congédiés.

Faits :

Les défenderesses, la Banque CIBC (la « Banque ») et Placements CIBC inc. (« Placements ») sont deux entités juridiques distinctes; la première est une banque à charte et la seconde est un cabinet de courtage en épargne collective. Entre le 30 octobre 2009 et le 5 janvier 2012, neuf représentants de courtier en épargne collective, … Continue Reading

British Columbia blanket ruling liberalizes regime for private placements of foreign securities to British Columbia-based institutional investors

Posted in Amendments, AMF, CSA, Industry News

Under Multilateral Instrument 51-105 – Issuers Quoted in the U.S. Over-the-Counter Markets, a foreign issuer which undertakes promotional activities in Canada without being listed or quoted on a designated exchange runs the risk of being deemed a reporting issuer in Canada, and therefore subject to extensive Canadian continuous disclosure requirements, if the issuer’s equity securities trade over the counter (OTC) in the United States. As a result, some dealers undertaking private placement offerings of foreign securities in Canada have been limiting Canadian selling efforts to Ontario (which did not adopt MI 51-105), Quebec (which issued a blanket order in Continue Reading

On Market Manipulation – the case of Thalbinder Singh Poonian et al., 2014 BCSECCOM 318

Posted in AMF, Compliance and Supervision, Conformité et supervision, Jurisprudence, Litigation, Marketplaces

In the fall of 2014, a British Columbia Securities Commission Panel considered whether five B.C. residents (the Respondents) had engaged in market manipulation of the shares of OSE Corp. (OSE), an Ontario company listed on the TSX Venture Exchange.

In Thalbinder Singh Poonian et al., 2014 BCSECCOM 318, the Panel found that the Respondents and certain relatives, friends and associates (Secondary Participants) acquired a dominant share position of OSE and manipulated OSE’s share prices by trading through brokerage and nominee accounts. They also sold shares to unsuspecting clients of the Phoenix Group and its affiliates, where Phoenix and … Continue Reading

Les pouvoirs de l’AMF

Posted in AMF, Compliance and Supervision, Conformité et supervision, Enforcement, Jurisprudence, Litigation, Litige en valeurs mobilières

Dans l’arrêt Autorité des marchés financiers (l’ « AMF ») c. SNC-Lavalin inc.[1] (« SNC »), la Cour d’appel du Québec a traité de l’aspect de la confidentialité et du huis clos des enquêtes de l’AMF.

Dans le cadre d’une enquête menée par l’AMF, cette dernière a requis d’un dirigeant de SNC qu’il communique certains documents, le tout assujetti d’une ordonnance l’empêchant de communiquer à quiconque toute information reliée à l’enquête, dont son existence, sa nature et les renseignements demandés, conformément à l’article 245 de la Loi sur les valeurs mobilières.

Cette ordonnance est par la suite modifiée, … Continue Reading

Alberta blanket ruling liberalizes regime for private placements of foreign securities to Alberta-based institutional investors

Posted in Amendments, AMF, CSA, Industry News

Under Multilateral Instrument 51-105 – Issuers Quoted in the U.S. Over-the-Counter Markets, a foreign issuer which undertakes promotional activities in Canada without being listed or quoted on a designated exchange runs the risk of being deemed a reporting issuer in Canada, and therefore subject to extensive Canadian continuous disclosure requirements, if the issuer’s equity securities trade over the counter (OTC) in the United States. As a result, some dealers undertaking private placement offerings of foreign securities in Canada have been limiting Canadian selling efforts to Ontario (which did not adopt MI 51-105) and Quebec (which issued a blanket order Continue Reading

G.R.C… Vous connaissez? *

Posted in AMF, Compliance and Supervision, Conformité et supervision, Enforcement

« GRC » c’est en fait le nouvel acronyme populaire auprès des institutions financières quant à leurs saines pratiques commerciales. En effet, GRC correspond à la Gouvernance, la gestion intégrée des Risques et la Conformité qui, selon l’Autorité des marchés financiers (AMF ou Autorité), sont à la base des saines pratiques commerciales.

À cet effet, l’AMF a publié en juin 2013 la Ligne directrice sur les saines pratiques commerciales, laquelle vise à énoncer les attentes de l’AMF à l’égard d’un traitement équitable du consommateur, soit le consommateur de produits financiers ou l’utilisateur de services financiers.

En précisant ainsi ses attentes, … Continue Reading

Le bureau de décision et de révision conclut que Jean Lamarre n’a pas refilé d’information privilégiée*

Posted in AMF, Autorités canadiennes en valeurs mobilières, CSA, Jurisprudence, Litigation, Litige en valeurs mobilières, Securities Litigation

Dans sa décision rendue le 7 avril 2014 dans l’affaire Autorité des marchés financiers c. Lamarre, 2014 QCBDR 29, le Bureau de décision et de révision (le « Bureau ») conclut que Jean Lamarre n’a pas communiqué d’information privilégiée alors qu’il siégeait au conseil d’administration de Pebercan en 2009. Cette décision traite de « tuyautage », expression bien connue en anglais sous le nom de « tipping ».

Le Bureau reconnaît que la preuve de tuyautage peut se faire de façon circonstancielle; cependant, certaines exigences doivent être respectées.

L’AMF allègue que Jean Lamarre aurait contrevenu à l’article 188 de … Continue Reading