Bill 138, Plan to Build Ontario Together Act, 2019

BILL 138, PLAN TO BUILD ONTARIO TOGETHER ACT, 2019

Schedule 7 of Bill 138 Plan to Build Ontario Together Act, 2019 contained two amendments to the Commodity Futures Act (CFA). Schedule 34 of Bill 138 contained several amendments to the Securities Act (OSA). Bill 138 received Royal Assent on December 10, 2019 and has become chapter 15 of the Statutes of Ontario, 2019.

Schedules 7 and 34 may be viewed on the Ontario Legislative Assembly’s website at www.ola.org/en/legislativebusiness/bills.
The text of these schedules will also be reflected in the consolidated versions of the of the CFA and the OSA on the Ontario e-laws website at www.ontario.ca/laws. An explanation of these amendments is contained below.

SCHEDULE 7
COMMODITY FUTURES ACT

The Schedule amends the Commodity Futures Act.

Section 12 of the Act currently prohibits persons or companies from disclosing certain information about investigations and examinations under the Act, except to the person’s or company’s counsel. The Schedule amends section 12 to permit disclosure of certain information to a person’s or company’s insurer or insurance broker under specified conditions.

Section 75 of the Act currently prohibits the Ontario Securities Commission from making orders or rulings of general application. The Schedule amends the Act to allow the Commission to make an order exempting a class of persons or companies, contracts, trades or intended trades from any requirement of Ontario commodity futures law on such terms or conditions as may be set out in the order. The amendments provide for the duration of such an order as well as rules requiring the publication of a notice respecting such an order.

SCHEDULE 34
SECURITIES ACT

The Schedule amends the Securities Act.

Section 16 of the Act currently prohibits persons or companies from disclosing certain information about investigations and examinations under the Act, except to the person’s or company’s counsel. The Schedule amends section 16 to permit disclosure of certain information to a person’s or company’s insurer or insurance broker under specified conditions.

Section 109 of the Act currently requires that where voting securities are registered in the name of a person or company other than the beneficial owner and the person or company knows that they are beneficially owned by an insider and that the insider has failed to file a report of such ownership with the Ontario Securities Commission as required by Part XXI of the Act, the person or company shall file a report. The Schedule repeals section 109.

Section 143.11 of the Act currently prohibits the Commission from making orders or rulings of general application. The Schedule amends the Act to allow the Commission to make an order exempting a class of persons or companies, trades, intended trades, securities or derivatives from any requirement of Ontario securities law on such terms or conditions as may be set out in the order. There is ordinarily a sunset of 18 months for such an order. The amendments also provide as rules requiring the publication of a notice respecting such an order.