If it ain’t broke… Comments on the Capital Markets Bill | Davies Ward Phillips & Vineberg LLP

Davies has submitted a full comment letter on a new Capital Markets Law (CMA) proposed by the Ontario Ministry of Finance, on the recommendation of the Capital Markets Modernization Task Force, to replace Ontario Securities Law.

Although some amendments to Ontario securities law are overdue, the general replacement of the Securities Law with brand new legislation is unnecessary and unjustifiable, and runs counter to the stated objectives of the task force. The proposed CMA contemplates several sweeping and fundamental changes that we believe would adversely impact issuers, investors and other stakeholders. Adoption of the draft CMA would unduly increase the regulatory burden on various market participants and provide the Ontario Securities Commission with virtually unlimited discretion in a number of areas, resulting in market uncertainty. Rather than move forward with the draft CMA, we recommended that the department instead amend current securities legislation – as it has done for decades to meet the ever-changing realities of Ontario Capital Markets – to incorporate specific and targeted changes to our securities regulation framework that are warranted.

Download the comment letter.