Third Session, 46th

General Assembly

59 Elizabeth II,

BILL 23

AN ACT TO AMEND THE SECURITIES ACT

Received and Read the First Time ...................................................................................................

Second Reading .................................................................................................................................

Committee ............................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

KEVIN O'BRIEN

Minister of

Government Services

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Securities Act to

allow a judge to issue a search

warrant authorizing a person to enter and search a private dwelling;

provide authority for a judge

to issue a production order respecting the production of documents;

clarify that it is an offence

to obstruct or interfere with an investigator or examiner during the

performance of his or her lawful duty;

expand the authority to grant

search warrants under the Act to judges of the Provincial Court ;

increase penalties the court

may impose; and

eliminate the requirement for ministerial approval before a charge may be

laid.

A BILL

AN ACT TO AMEND THE SECURITIES ACT

Analysis

S.14 Amdt.

Power of investigator or examiner

2. S.14.1 Added

Production orders

S.15 Amdt.

Detention of things seized

4. S.16 Amdt.

Examination or seizure of documents where privilege claimed

5. S.18 Amdt.

Report of investigator or examination

6. S.19 Amdt.

Non-disclosure

7. S.20 Amdt.

Disclosure by superintendent

8. S.122 Amdt.

Offences, general

S.123 Rep .

Consent of minister

10. S.142 Amdt.

Application to the Crown

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

RSNL1990 cS-13

as amended

1. (1) Subsection 14(4) of the Securities Act is repealed and the

following substituted:

(4) A person making an investigation or an

examination under

section 12 or 13 may apply to a judge of the Provincial Court

or a judge of the Trial Division in the absence of the public and without notice

for an order authorizing the person or persons named in the order to enter and

search a building, receptacle or place specified and to seize a thing described

in the authorization that is found in the building, receptacle or place and to

bring it before the judge granting the authorization, or another judge, to be

dealt with by him or her according to law.

(2) Subsection 14(8) of the Act is repealed and

the following substituted:

(8) For the purpose of subsections (4), (5) and

(6), "building, "receptacle or place" includes a private residence.

2. The Act is amended by adding immediately after

section 14 the following:

Production orders

14.1

(1) A

judge of the Provincial Court or a judge of the Trial Division may order a

person, other than a person who is the subject of an investigation,

(

a) to produce a document

or a copy of a document, certified by affidavit to be a true copy, or to

produce data; or

(

b) to prepare a document

based on a document or data already in existence and to produce it.

(2) An order referred to in subsection (1) shall

require the document or data to be produced within the time, at the place and

in the form specified and to be given to an investigator, examiner or other

person designated by the superintendent.

(3) A judge may make an order referred to in

subsection (1) where he or she is satisfied on the basis of an application made

in writing and on oath or affirmation and without notice that there are reasonable

grounds to believe that

(

a) a person has

contravened or is contravening this Act, the regulations or the rules or is

suspected to have contravened this Act, the regulations or the rules;

(

b) the document or data

will provide evidence respecting a contravention or suspected contravention of

this Act, the regulations or the rules; and

(

c) the person who is

subject to the order has possession or control of the document or data.

(4) An order referred to in subsection (1) may

communication between a lawyer and his or her client.

(5) The order referred to in subsection (1) may be

revoked, renewed or varied.

(6) A copy of a document produced under this

section, on proof by affidavit that it is a true copy, is admissible in

evidence in proceedings under this Act and has the same probative force as the

original document would have if it had been proved in the ordinary way.

(7) Notwithstanding

section 17, copies of

documents produced under this

section are not required to be returned to the

person who provided them.

3. Subsection 15(1) of the Act is amended by

deleting the words "of the Trial Division".

(1) Paragraph 16(1 )(

b) of the Act is amended by deleting the words "Trial Division" and

substituting the word "court".

(2) Subsection 16(3) of the Act is amended by

deleting the words "of the Trial Division".

(3) Subsection 16(4) of the Act is amended by

deleting the words "of the Trial Division".

(4) Subsection 16(9) of the Act is amended by

deleting the words "of the Trial Division".

5. (1) Subsection 18(1) of the Act is amended

by adding immediately after the reference "section 14" the word and reference

"or

section 14.1".

(2) Subsection 18(2) of the Act is amended by

adding immediately after the reference "section 14" the word and reference

"or

section 14.1".

(1) Paragraph 19(1 )(

b) of the Act is repealed and the following substituted:

(

b) the name of a person examined or sought to be

examined under

section 14, testimony given under

section 14, information

obtained under

section 14 or

section 14.1, the nature or content of questions

asked under

section 14, the nature or content of demands for the production of

a document or other thing under

section 14 or

section 14.1, or the fact that a

document or other thing was produced under

section 14 or

section 14.1.

(2) Subsection 19(2) of the Act is amended by

adding immediately after the reference "section 14" the word and reference

"or

section 14.1".

(1) Paragraph 20(1 )(

b) of the Act is repealed and the following substituted:

(

b) the name of a person examined or sought to be

examined under

section 14, testimony given under

section 14, information

obtained under

section 14 or

section 14.1, the nature or content of questions

asked under

section 14, the nature or content of demands for the production of

a document or other thing under

section 14 or

section 14.1, or the fact that a

document or other thing was produced under

section 14 or

section 14.1; or

(2) Subsection 20(5) of the Act is amended by

adding immediately after the reference "section 14" the word and

reference "or

section 14.1".

8. (1) Subsection 122(1) of the Act is repealed

and the following substituted:

Offences, general

(1) Every person

or company that,

(

a) makes a statement in material, evidence or

information submitted to the superintendent, a person acting under the authority

of the superintendent or a person making an investigation or examination under

this Act that, in a material respect and at the time and in the light of the

circumstances under which it is made, is misleading or untrue or does not state

a fact that is required to be stated or that is necessary to make the statement

not misleading;

(

b) makes a statement in an application, release,

report, preliminary prospectus, prospectus, return, financial statement, information

circular, take-over bid circular, issuer bid circular or other document required

to be filed or furnished under the securities law of the province that, in a

material respect and at the time and in the light of the circumstances under

which it is made, is misleading or untrue or does not state a fact that is

required to be stated or that is necessary to make the statement not

misleading;

(

c) obstructs or

interferes with an investigator, examiner or other person designated by the

superintendent who is carrying out a duty under this Act, the regulations or

the rules; or

(

d) contravenes the

securities law of the province,

is guilty of an offence and on conviction is liable to a fine of not

more than $5,000,000 or to imprisonment for a term of not more than 5 years, or

to both a fine and imprisonment.

(2) Subsection 122(4) of the Act is repealed and

the following substituted:

(4) Every director or officer of a company or of a

person other than an individual who authorized, permitted or acquiesced in the

commission of an offence under subsection (1) by the company or person, whether

or not a charge has been laid or a finding of guilt has been made against the

company or person in respect of the offence under subsection (1), is guilty of

an offence and is liable on conviction to a fine of not more than $5,000,000 or

to imprisonment for a term of not more than 5 years, or to both a fine and

imprisonment.

(3) Paragraph 122(5 )(

a) of the Act is amended by deleting the number "$1,000,000" and

substituting the number "$5,000,000".

Section 123 of the Act is repealed.

10. Subsection 142(2) of the Act is amended by deleting

the number "61" and substituting the number "14.1".

Earl G. Tucker, Queen's Printer