Mark Gelowitz, Allan Coleman, Robert Carson
In Canada, a patchwork of provincial legislation, regulations, rules, instruments and policies is responsible for governing securities regulation, with additional input from stock exchanges (notably, the Toronto Stock Exchange), the Criminal Code of Canada, business corporation statutes and the common law. In the third edition of The Securities Litigation Review: Canada, authors and Osler lawyers Mark Gelowitz, Allan Coleman and Robert Carson discuss securities litigation in Canada and examine in detail the way this governance regime operates as well as the role it plays in the enforcement of securities law. In addition, they provide a useful analysis of how rights related to the issuance and exchange of publicly traded securities are enforced across the country, with sections devoted to both public and private enforcement proceedings. The authors also offer insight into cross-border issues and the circumstances under which Canadian courts have jurisdiction over a dispute.
As in past editions, the authors have included a Year in Review section that provides a valuable assessment of the most significant developments of 2016 and includes statistics from the Canadian Securities Administrators relating to enforcement by securities regulators in Canada over the previous twelve months. The authors remark that there were few class action developments through the year, but several decisions confirmed important protections for defendants. The section also features a discussion of the increasing prevalence of “1782 orders” through which plaintiffs in Canadian securities class actions seek non-party discovery from people or companies located in the United States, as well as the different approaches to these orders taken across the country in 2016. In addition, the authors touch on the significance of an Ontario Divisional Court decision that upheld a finding of the Ontario Securities Commission (OSC) and reference the first few months of operation of the OSC’s whistle-blower program. Finally, there is a review of the progress made on the Cooperative Capital Markets Regulatory System, the bid by the governments of Canada and several provinces to establish a national securities regulator.
The authors end by providing an outlook for the year ahead which they point out will include the much-anticipated release of a Supreme Court of Canada decision relating to audit standards and the audit process that has the potential to affect securities class actions.
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