Taking Stock of the Securities Transfer Act

As you may have heard, the new Ontario Securities Transfer Act (STA) creates a comprehensive system of rules dealing with the transfer and holding of securities and interests in securities. Modeled on Article 8 of the U.S. Uniform Commercial Code, the STA, once in force, will essentially bring Ontario practice into line with current international commercial practice.

The intention is that similar legislation will be adopted by all of the Canadian provinces and territories, resulting in a harmonized set of rules for the transfer, holding and pledging of securities across Canada. As noted below, Alberta’s very similar STA has already been passed, and it is expected that British Columbia will follow suit shortly.