The Alberta Securities Commission (ASC) will now automatically reciprocate most new orders and settlement agreements made by other Canadian securities regulators.

On July 1, a new section (198.1) of the Albert Securities Act came into effect. As a result, if another Canadian securities regulator issues an order or enters into an agreement that imposes sanctions, conditions, restrictions, or requirements on a person or company, it will automatically apply in Alberta; it will apply without notice to the person or company and without a hearing, and will have the same effect as if it were made by the ASC. If the other Canadian regulator amends or revokes the order or agreement at a later date, that change will also apply in Alberta.

“This provision will take a good system of inter-jurisdictional reciprocation of enforcement decisions, and make it even faster and more effective,” says Bill Rice, Chair and Chief Executive Officer of the ASC. “When there are findings or admissions of a breach of securities laws, or acts contrary to the public interest in another province or territory, sanctions such as cease-trade orders and director and officer bans will instantly have effect in Alberta as well. That’s a very positive step to protect Alberta investors and market participants.”

The new legislation also allows for orders or agreements made by international regulators such as the U.S. Securities and Exchange Commission to be reciprocated in Alberta, but the ASC notes that this will not occur automatically.