Will New Powers Lead To More Effective Capital Markets Regulatory Enforcement?

The effects of recent measures to broaden the investigative and enforcement powers of securities regulators began to be felt in 2024.

Over the last year, the British Columbia Securities Commission (BCSC) implemented and first used the Administrative Penalties Imposed by Notice (APIN) mechanism. The APIN allows significant penalties to be imposed without a hearing for less serious contraventions of securities laws. Meanwhile, the Ontario government contemplated new proposals to distribute recovered funds to harmed investors and to ease requirements for delivering investigative summonses.

We also witnessed a significant increase in the quantum of monetary sanctions imposed by securities regulators across Canada. In a rare year, the Supreme Court of Canada weighed in on two issues critical to capital market participants: regulatory jurisdiction and the enforceability of penalties in bankruptcy. The Court is poised to consider the definition of "material change" in