Securities Law & Instruments

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Notice of Amendments to the Securities Act

On May 17, 2007, amendments to the Securities Act contained in the Government's Spring 2007 Budget Bill, received Royal Assent. The amendments are included in Schedule 38 to Bill 187, Budget Measures and Interim Appropriation Act, 2007.

The most significant amendments can be found in a re-enacted Part XX of the Act dealing with take-over bids. The Commission has also published for comment proposed Ontario Rule 62-504 "Take-over Bids and Issuer Bids" that would complement the legislative amendments. The proposed Rule was published for a 90 day comment period ending on July 9, 2007.

Other changes include the following:

• Amendments to section 57 of the Act to clarify that an issuer cannot proceed with a distribution or an additional distribution of securities pursuant to an amendment to a prospectus unless the Director has issued a receipt for the amendment.

• Amendments to permit the Commission to prescribe by rule the certificate form in a prospectus and the waiting period between the issuance of a receipt for a preliminary prospectus and the issuance of a receipt for a prospectus.

• Technical amendments to section 143.10 of the Act regarding certain agreements, memorandums of understanding and arrangements entered into by the Commission that the Commission is not required to publish in its Bulletin.

The amendment to section 143.10 came into force on the date of Royal Assent of Bill 187. All of the remaining proposed Act amendments will come into force on a day to be proclaimed by the Lieutenant Governor in Council.

The relevant portions of Bill 187 are reprinted in Chapter 9 and may also be viewed on the Ontario Legislative Assembly's website at Draft OSC Rule 62-504 may also be found in Chapter 9 of the April 6 OSC Bulletin at (2007) 30 OSCB 3136.

Questions may be referred to any of:

Monica Kowal
General Counsel
(416) 593-3653


Rossana Di Lieto
Associate General Counsel
(416) 593-8106


Michael Balter
Senior Legal Counsel
(416) 593-3739