Corporate Digest @ Gowlings - September 2005 (continued)

Edited by Mr Rod Seyffert

Legislation introduced in Ontario in 2002, The Keeping the Promise for a Strong Economy Act, commonly referred to as Bill 198, was a broad legislative initiative that proposed sweeping reform to a number of statutes. Among the most discussed, and most controversial, amendments contained in Bill 198 were those in Part XXVI, which targeted the Securities Act (Ontario) . While Bill 198 received Royal Assent on December 9, 2002, only certain portions of Part XXVI were proclaimed in force effective April 7, 2003.

One of the more contentious amendments that was notably absent from the proclamation was the establishment of statutory civil liability for secondary market disclosure. The new statutory regime, now contained in Part XXIII.1 of the Securities Act and as amended by the Budget Measures Act, has been proclaimed to come into force on December 31, 2005. Ontario will be the first Canadian jurisdiction to adopt