Saskatchewan Legislature Assembly Goes it Alone to Grant OBSI Binding Decision-Making Powers of Up to $1 Million

The Saskatchewan government has introduced a bill aimed at enhancing investor protection by significantly raising the maximum penalty for securities violations to $1 million and bolstering regulatory enforcement powers. This includes the ability to designate an independent dispute resolution service with binding authority to enforce compensation recommendations and other orders, which could be enforced as court decisions. While these orders are not appealable, they are subject to judicial review.

This move came before the Canadian Securities Administrators (CSA) introduced similar proposals in November 2023. The proposed legislation seeks to strengthen investor safeguards, align Saskatchewan’s regulatory regime with other Canadian jurisdictions, and provide more effective deterrents against securities law violations.

The Investment Industry Association of Canada has published a letter to the Saskatchewan Government advocating against these changes which are set out below along with information about the subject matter. Why the Saskatchewan Government jumped the gun in moving forward with this legislation while the CSA is reviewing such matters suggests we are headed for a possible patchwork of legislation regarding dispute resolution in the capital markets.

READ MORE (James Langton, Advisor.ca -Saskatchewan Seeks Binding Dispute Resolution)
READ IIAC ARTICLE (IILAC – Dispute Resolution: Investors Deserve Options)
READ IIAC LETTER TO SK GOVERNMENT
SK GOVERNMENT PRESS RELEASE
SK BILL 150 (Saskatchewan Investors Protection Act)