V-1.1 - Securities Act

Updated to 2 June 2021

This document has official status.

chapter V-1.1

Securities Act

TITLE I GENERAL PROVISIONS

1982, c. 48; 2001, c. 38, s. 1.

CHAPTER I SCOPE

1. This Act applies to the following forms of investment:

(1)  any security recognized as such in the trade, more particularly, a share, bond, capital stock of an entity constituted as a legal person, or a subscription right or warrant;

(2)  an instrument, other than a bond, evidencing a loan of money;

(3)  a deposit of money, whether or not evidenced by a certificate except a deposit received by the Gouvernement du Québec, the Government of Canada, or one of their departments or agencies;

(4)  (subparagraph repealed);

(5)  (subparagraph repealed);

(6)  a share in an investment club;

(7)  an investment contract;

(8)  (subparagraph repealed);

(8.1)  an option or other non-traded derivative whose value is derived from, referenced to or based on the value or market price of a security, granted as compensation or as payment for a good or service;

(9)  any other form of investment determined by regulation of the Government.

An investment contract is a contract whereby a person, having been led to expect profits, undertakes to participate in the risk of a venture by a contribution of capital or loan, without having the required knowledge to carry on the venture or without obtaining the right to participate directly in decisions concerning the carrying on of the venture.

1982, c. 48, s. 1; 1999, c. 40, s. 327; 2001, c. 38, s. 2; 2008, c. 7, s. 137; 2008, c. 24, s. 196.

2. The scheme of securities regulation established by this Act and the regulations applies, with the necessary modifications, to the other forms of investment listed in section 1, subject to any express exemption.

1982, c. 48, s. 2.

2.1. This Act does not apply to derivatives within the meaning of the Derivatives Act (chapter I-14.01).

2008, c. 24, s. 197.

Not in force

2.2. (Not in force).

2009, c. 27, s. 10.

3. The following forms of investment are exempt from the application of Titles II to VIII, except that mentioned in paragraph 10, which remains subject to Titles V and VII:

(1)  a debt security issued by the Gouvernement du Québec, the Government of Canada or the government of a Canadian province or territory;

(2)  (paragraph repealed);

(3)  a security issued by a non-profit legal person, provided that its distribution entails no remuneration;

(4)  a qualifying share or a debt security issued by a financial services cooperative within the meaning of the Act respecting financial services cooperatives (chapter C‐67.3), provided that the subscription was neither solicited nor received by a remunerated salesman or canvasser, and that the share was fully paid at the time of subscription;

(4.1)  (paragraph repealed);

(4.2)  a share, other than a qualifying share, issued by a federation within the meaning of the Act respecting financial services cooperatives and distributed to the member credit unions of such a federation;

(4.3)  an investment fund share issued by a federation within the meaning of the Act respecting financial services cooperatives and distributed to the member credit unions of such a federation;

(4.4)  a share, other than a qualifying share, issued by a federation within the meaning of the Act respecting financial services cooperatives and distributed to a legal person belonging to a financial group referred to in section 6.3 of the Act respecting financial services cooperatives;

(4.5)  a share, other than a qualifying share, issued by the Fédération des caisses Desjardins du Québec and distributed to a legal person belonging to the financial group referred to in the second paragraph of section 6.3 of the Act respecting financial services cooperatives or to a federation of credit unions, whether or not established under that Act, that is an auxiliary member of the Fédération des caisses Desjardins du Québec;

(5)  a common or preferred share in a cooperative or a cooperative federation, and a common or preferred share in the Coopérative fédérée du Québec, issued to a member or a person wishing to become a member, provided that the subscription was neither solicited nor received by a remunerated salesman or canvasser;

(5.1)  a share in a mutual company within the meaning of the Insurers Act (chapter A-32.1), issued to a member or a person wishing to become a member;

(6)  a debt security issued only to a member by a person referred to in paragraph 5, according to the same conditions;

(7)  an instrument evidencing a debt and issued in settlement of a credit sale or conditional sale, as long as it is not transferred to a natural person;

(8)  an instrument evidencing a debt, including a bond, as long as the issue and transfer thereof constitute, for the issuer as well as for the subscriber, and any subsequent purchaser, isolated transactions;

(9)  a deposit of money within the meaning of the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2), provided that it is received by a deposit institution authorized under that Act or by a bank or an authorized foreign bank listed in Schedule I, II or III to the Bank Act (S.C. 1991, c. 46);

(10)  a credit balance referred to in section 168;

(11)  a security of a mutual fund, provided that the mutual fund is established and administered by a trust company authorized under the Trust Companies and Savings Companies Act (chapter S‐29.02), that the securities of the mutual fund are distributed by such a trust company and that the assets of the mutual fund are composed exclusively of unsolicited funds received from tutors to property, curators to property, liquidators, syndics, sequestrators, advisers to persons of full age, trustees or administrators of the property of others and commingled with the authorization of the depositor or his agent for the purpose of investment;

(12)  a share in an investment club defined by regulation;

(13)  an insurance or annuity contract issued by an insurer authorized under the Insurers Act, except an individual variable contract that is not an individual variable life annuity or that does not guarantee payment at maturity of a benefit equal to at least 75% of the premiums paid before 75 years of age;

(14)  a debt security issued or guaranteed by a bank or an authorized foreign bank listed in Schedule I, II or III to the Bank Act, except a debt security conferring a right of payment ranking lower than a deposit contemplated in paragraph 9 and entrusted to the issuer or the guarantor of the debt security;

(15)  a debt security issued or guaranteed by the International Bank for Reconstruction and Development, the Asian Development Bank or the Inter-American Development Bank, as long as it is payable in Canadian or American currency;

(15.1)  any other form of investment prescribed by regulation;

(16)  (paragraph repealed).

1982, c. 48, s. 3; 1982, c. 48, s. 339; 1984, c. 41, s. 1; 1985, c. 17, s. 96; 1987, c. 95, s. 402; 1988, c. 64, s. 561, s. 587; 1990, c. 77, s. 1; 1999, c. 40, s. 327; 2000, c. 29, s. 674; 2001, c. 38, s. 3; 2002, c. 45, s. 623; 2002, c. 70, s. 186; O.C. 1366-2003, s. 13; 2004, c. 37, s. 1; 2006, c. 50, s. 1; 2018, c. 23, s. 803.

4. Every agency that is a mandatary of the State, whether it is an agency of the Gouvernement du Québec, of the Government of Canada or of the government of any Canadian province or territory, or a fund established or administered by any of such governments which exercises control over more than 10% of the voting rights attaching to the outstanding securities of a reporting issuer shall declare such control to the Autorité des marchés financiers within 10 days from the end of the month in which the acquisition was made, in the form determined by section 89.3.

The agency or fund shall similarly declare any change in its control greater than 1% of the voting rights attaching to the outstanding securities within 10 days of the end of the month in which the change occurred, and any other change, within 60 days after the end of the year.

1982, c. 48, s. 4; 1999, c. 40, s. 327; 2002, c. 45, s. 696; 2004, c. 37, s. 2; 2006, c. 50, s. 2.

4.1. (Repealed).

2001, c. 38, s. 4; 2009, c. 25, s. 1.

CHAPTER II INTERPRETATION

5. In this Act, unless the context indicates otherwise,

“adviser” means a person engaging in or holding themself out as engaging in the business of advising another with respect to investment in or the purchase or sale of securities, or the business of managing a securities portfolio;

“associate”, where used to indicate a relationship with a person, means

(1)  any company in which the person owns securities assuring him of more than 10% of a class of shares to which are attached voting rights or an unlimited right to participate in earnings and in the assets upon winding-up;

(2)  any partner of that person;

(3)  any trust or succession in which the person has a substantial ownership interest or to which he fulfils the functions of a trustee or liquidator or similar functions;

(4)  the spouse of that person and his children, as well as his relatives and his spouse’s relatives, if they share his residence;

“benchmark” means a price, estimate, rate, index or value that is regularly determined by applying a formula or method to one or more underlying interests or by evaluating those interests, that is published or made available to the public by onerous or gratuitous title, and that is used as a reference for such purposes as setting the interest or any other sum payable under a contract or a financial instrument, including a derivative within the meaning of the Derivatives Act (chapter I-14.01), setting the purchase or sale price or the value of a contract or a financial instrument, including such a derivative, or measuring the performance of a financial instrument or of an investment fund;

“benchmark administrator” means a person who controls the creation or provision of a benchmark;

“closed company”, for the purposes of paragraph 5 of section 141 of the Charter of the French language (chapter C-11), means a company, other than an investment fund, that is not a reporting issuer and that meets the conditions determined by regulation;

“credit rating” means an assessment, disclosed publicly or distributed by subscription, of the creditworthiness of an issuer as an entity or with respect to specific securities or a specific portfolio of securities or assets;

“credit rating organization” means any person that issues credit ratings;

“dealer” means a person engaging in or holding themself out as engaging in the business of

(1)  trading in securities as principal or agent;

(2)  distributing a security for their own account or for another’s account; or

(3)  any act, advertisement, solicitation, conduct or negotiation directly or indirectly in furtherance of an activity described in paragraph 1 or 2;

“director” means a director of a legal person, or a natural person acting in a similar capacity for another person;

“distribution” means

(1)  the endeavour to obtain, or the obtaining, by an issuer, of subscribers or acquirers of his securities;

(2)  the endeavour to obtain, or the obtaining, by a firm underwriter, of purchasers for securities he has underwritten;

(3)  the endeavour to obtain, or the obtaining, by a subscriber or purchaser of securities which he acquired under an exemption, of purchasers for such securities without the benefit of a final exemption from a prospectus;

(4)  the endeavour to obtain, or the obtaining, by a subscriber or purchaser of securities which he acquired through a transaction for which no prospectus was prepared as required by law and no exemption was granted, of purchasers for such securities;

(4.1)  the endeavour to obtain or the obtaining of purchasers for securities acquired from a company whose constituting documents provide for restrictions on the free transfer of shares, prohibit the distribution of securities to the public and limit the number of shareholders to 50, exclusive of present or former employees of the company or a subsidiary, by a subscriber or purchaser of such securities;

(5)  the endeavour to obtain, or the obtaining, by a subscriber or purchaser of securities which he acquired outside Québec, of purchasers for such securities in Québec, except on a stock exchange or on the over-the-counter market;

(6)  the endeavour to obtain or the obtaining of purchasers for securities, not previously the subject of a prospectus, of a company whose constituting documents provided for restrictions on the free transfer of shares, prohibited the distribution of securities to the public and limited the number of shareholders to 50, exclusive of present or former employees of the company or a subsidiary;

(7)  the endeavour to obtain, or the obtaining, by an agent, of subscribers or purchasers of securities being distributed in accordance with subparagraphs 1 to 6;

(8)  the giving in guarantee by an issuer of securities issued by him for that purpose;

(9)   the disposal, by a control person of an issuer or a person holding more than a determined portion of an issuer’s securities, of the securities held by that control person or that person or a determined portion of them according to the portion and in the manner prescribed by regulation;

“forward-looking information” means disclosure regarding possible events, situations or operating results that is based on assumptions about future economic conditions and courses of action, and includes financial information about prospective operating results, financial position or cash flows that is presented either as a forecast or a projection;

“insider” means an insider within the meaning of section 89;

“investment fund” means a mutual fund or a non-redeemable investment fund;

“investment fund manager” means a person who directs the business, operations and affairs of an investment fund;

“issuer” means any person who has outstanding securities, or issues or proposes to issue securities;

“material fact” means a fact that may reasonably be expected to have a significant effect on the market price or value of securities issued or securities proposed to be issued;

“misrepresentation” means any misleading information on a material fact as well as any pure and simple omission of a material fact;

“mutual fund” means

(1)  an issuer whose primary purpose is to invest money provided by its security holders and whose securities entitle the holder to receive on demand or within a specified period after demand an amount computed by reference to the value of a proportionate interest in the whole or in part of the net assets, including a separate fund or trust account, of the issuer; or

(2)   a mutual fund designated under section 272.2 or determined by regulation;

“non-redeemable investment fund” means an issuer having all the following characteristics:

(1)  its primary purpose is to invest money provided to it by its security holders;

(2)  it does not invest for the following purposes:

(a)  exercising or seeking to exercise control of an issuer, except any issuer that is a mutual fund or a non-redeemable investment fund; or

(b)  being actively involved in the management of any issuer in which it invests, except any issuer that is a mutual fund or a non-redeemable investment fund; and

(3)  it is not a mutual fund;

“offering memorandum” means a document purporting to describe the business and internal affairs of an issuer that has been prepared primarily for delivery to a prospective subscriber or purchaser so as to assist the prospective subscriber or purchaser to make an investment decision about securities being sold in a distribution in connection with which a prospectus would have been filed but for an exemption under this Act or the regulations, but does not include a document setting out current information about an issuer for the benefit of a prospective subscriber or purchaser familiar with the issuer through prior investment or business dealings;

“officer” means the chair or vice-chair of the board of directors, the chief executive officer, the chief operating officer, the chief financial officer, the president, the vice-president, the secretary, the assistant secretary, the treasurer, the assistant treasurer or the general manager of an issuer or of a registrant, or any natural person designated as such by the issuer or the registrant or acting in a similar capacity;

“privileged information” means any information that has not been disclosed to the public and that could affect the decision of a reasonable investor;

“reporting issuer” means an issuer contemplated in section 68;

“voting security” means any security other than a debt security carrying a voting right that may be exercised either under all circumstances or under some circumstances that have occurred and are continuing.

1982, c. 48, s. 5; 1984, c. 41, s. 2; 1987, c. 40, s. 1; 1990, c. 77, s. 2; 2001, c. 38, s. 5; 2004, c. 37, s. 3; 2006, c. 50, s. 3; 2009, c. 25, s. 2; 2009, c. 58, s. 91; 2018, c. 23, s. 682.

5.1. For the purposes of this Act and the regulations, “person” includes, in addition to a natural person and a legal person, a partnership, a trust, a fund, an association, a syndicate, a body and any other group of persons that is not constituted as a legal person as well as any person acting as a trustee, liquidator, executor or legal representative.

2006, c. 50, s. 4.

5.2. “Control person” means a person that, alone or with other persons acting in concert by virtue of an agreement, holds a sufficient number of the voting rights attached to all outstanding voting securities of an issuer to affect materially the control of the issuer. If the person, alone or with other persons acting in concert by virtue of an agreement, holds more than 20% of those voting rights, the person is presumed to hold a sufficient number of the voting rights to affect materially the control of the issuer.

2006, c. 50, s. 4.

5.3. When used in relation to an issuer other than an investment fund, “material change” means a change in the business, operations or capital of the issuer that would reasonably be expected to have a significant effect on the market price or value of any of the securities of the issuer, or a decision to implement such a change made by the directors or by senior management of the issuer who believe that confirmation of the decision by the directors is probable.

When used in relation to an investment fund, “material change” means a change in the business, operations or affairs of the investment fund that would be considered important by a reasonable investor in determining whether to subscribe for, purchase or continue to hold securities of the investment fund, or a decision to implement such a change made by the directors of the investment fund or its investment fund manager, by senior management of the investment fund who believe that confirmation of the decision by the directors is probable, or by senior management of the investment fund manager who believe that confirmation of the decision by the directors of the investment fund manager is probable.

2006, c. 50, s. 4.

5.4. If a document, a part of a document or a provision of Québec securities laws or of extra-provincial securities laws is described as being incorporated by reference in another document or in another provision of Québec securities laws or of extra-provincial securities laws, it is deemed to be an integral part of that document or those laws.

2006, c. 50, s. 4.

5.5. In this Act, the words and expressions defined in sections 5.1 to 5.4 have the meaning assigned to them by those sections unless the context indicates otherwise.

2006, c. 50, s. 4.

5.6. In this Act, the expressions “mutual fund dealer” and “scholarship plan dealer” have the meaning assigned to them by regulation.

2009, c. 25, s. 3.

6. In the case of a patrimony endowed with a certain degree of autonomy, such as a retirement fund, partnership, trust or group without legal personality, this Act and the regulations apply as if the patrimony had such personality, but their observance is the responsibility of the persons in charge of the patrimony, and both civil and penal actions connected with this Act may be brought against them for acts relating to such patrimony.

In the case of a partnership, actions referred to in the first paragraph may also be brought against the partnership or against the partners, except the special partners.

1982, c. 48, s. 6; 1984, c. 41, s. 3; 2001, c. 38, s. 6; 2006, c. 50, s. 5; 2009, c. 25, s. 4.

7. In the case of an investment contract, the required disclosure relates to the venture and it is the responsibility of the promoter of the venture and the persons in charge of it to make the disclosure, unless the Authority specially designates a person in virtue of section 66.

1982, c. 48, s. 7; 1984, c. 41, s. 3; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 6.

7.1. (Repealed).

2001, c. 38, s. 7; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 7.

8. The person owning securities entitling him to elect in all cases a majority of the directors of a company has the control of that company.

1982, c. 48, s. 8; 1984, c. 41, s. 3.

9. A company is the subsidiary of another company when it is controlled by it or by companies controlled by it.

A subsidiary of a company that is itself a subsidiary of another company is deemed to be a subsidiary of that other company.

Two companies are affiliates if one is the subsidiary of the other or if both are subsidiaries of the same company or are controlled by the same person.

1982, c. 48, s. 9; 1984, c. 41, s. 3.

10. Whenever the question of the ownership of securities arises, any agreement by the effect of which the ownership of the securities is ascribed to a holder other than their true owner is disregarded.

1982, c. 48, s. 10.

10.1. For the purposes of application of this Act, the transfer of ownership in any purchase or disposition is deemed accomplished upon acceptance of the subscription or of the offer of sale or purchase.

1984, c. 41, s. 4.

10.1.1. (Repealed).

2011, c. 26, s. 70; 2015, c. 8, s. 370.

10.2. (Repealed).

1984, c. 41, s. 4; 1992, c. 57, s. 708; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2008, c. 20, s. 170.

10.3. (Repealed).

1984, c. 41, s. 4; 2008, c. 20, s. 170.

10.4. (Repealed).

1984, c. 41, s. 4; 1992, c. 57, s. 709; 2008, c. 20, s. 170.

10.5. (Repealed).

1984, c. 41, s. 4; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2008, c. 20, s. 170.

10.6. Documents required to be filed or transmitted under this Act must, where so determined by regulation of the Authority, be filed or transmitted in the medium or by the technological means indicated in the regulations of the Authority.

2001, c. 38, s. 8; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 8.

10.7. The Authority may, by regulation, determine conditions for transmitting and receiving documents referred to in this Act or a regulation made under this Act.

2006, c. 50, s. 9.

TITLE II DISTRIBUTION OF SECURITIES TO THE PUBLIC

CHAPTER I DISTRIBUTION OF SECURITIES

DIVISION I PROSPECTUS

11. Every person intending to make a distribution of securities shall prepare a prospectus that shall be subject to a receipt issued by the Authority. The application for a receipt must be accompanied with the documents prescribed by regulation.

Notwithstanding the foregoing, in the case of a distribution made by a dealer acting as firm underwriter, the issuer is responsible for preparing the prospectus.

1982, c. 48, s. 11; 1984, c. 41, s. 5; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 10.

12. Every person intending to make, from Québec, a distribution of securities to persons established outside Québec shall prepare a prospectus and obtain a receipt therefor from the Authority.

No prospectus is required, however, where the Authority agrees or does not object within 15 days after receiving the information required by regulation.

1982, c. 48, s. 12; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

13. A prospectus must contain the information and certificates prescribed by regulation.

It must provide full, true and plain disclosure of all material facts relating to the securities issued or proposed to be distributed.

1982, c. 48, s. 13; 2006, c. 50, s. 12.

14. The Authority shall issue a receipt except in the cases prescribed in section 15 or in the regulations or unless it is not in the public interest to do so.

The Authority may subject the issue of a receipt to the fulfilment of an undertaking or to any other condition.

1982, c. 48, s. 14; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 13.

15. The Authority shall refuse to issue a receipt if it believes it should do so for one of the following reasons:

(1)  the prospectus or any document filed with it fails to comply with this Act or the regulations, contains any statement, promise, estimate or forward-looking information that is misleading, including through plain and simple omission, or contains a misrepresentation;

(2)  an unconscionable consideration has been paid or is intended to be paid for promotional purposes or for a service or the acquisition of property;

(3)  the proceeds from the distribution of the securities that are to be paid into the treasury of the issuer, together with other resources of the issuer, are insufficient to accomplish the purpose of the distribution stated in the prospectus;

(4)  the issuer cannot be expected to have the financial resources necessary to operate the business given the financial situation of the issuer, an officer, director or promoter of the issuer, the investment fund manager of the issuer, an officer or director of the investment fund manager of the issuer or a control person of the issuer or of the investment fund manager of the issuer;

(5)  the past conduct of the issuer, an officer, director or promoter of the issuer, the investment fund manager of the issuer, an officer or director of the investment fund manager of the issuer or a control person of the issuer or of the investment fund manager of the issuer is such that the business of the issuer may not be conducted with the integrity necessary to safeguard the interests of its security holders;

(6)  a person that has prepared or certified any part of the prospectus or is named as having prepared or certified a valuation or report in connection with the prospectus does not have the required competence or integrity; or

(7)  adequate arrangements have not been made for the holding in trust of the proceeds of the distribution pending the distribution of the securities.

1982, c. 48, s. 15; 1990, c. 77, s. 4; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 14.

16. Only the following documents may be used in the course of a distribution:

(1)  a prospectus for which a receipt has been issued;

(2)  a document filed with the prospectus and mentioned therein;

(3)  an advertising document not prohibited by regulation, provided it adequately reflects the information presented in the documents contemplated in paragraphs 1 and 2, without distorting it by selective presentation or by adding misleading statements.

1982, c. 48, s. 16.

17. The document mentioned in paragraph 3 of section 16 must refer to the prospectus in the manner prescribed by regulation and give the conditions under which the prospectus is available to the public.

1982, c. 48, s. 17.

DIVISION II SIMPLIFIED PROSPECTUS

18. A distribution of securities may be made by way of a simplified prospectus if the reporting issuer meets the conditions fixed by regulation.

1982, c. 48, s. 18; 1984, c. 41, s. 6; 2001, c. 38, s. 9.

18.1. In addition to its own content, a simplified prospectus includes, as integral parts, all the documents which, by regulation, are required to be incorporated by reference, and any other documents to be incorporated by reference under its own terms.

1984, c. 41, s. 7; 2006, c. 50, s. 15.

19. The rules governing a prospectus apply, with the necessary modifications, to a simplified prospectus.

1982, c. 48, s. 19; 2006, c. 50, s. 16.

DIVISION III PRELIMINARY PROSPECTUS

20. A preliminary prospectus may be filed before the prospectus contemplated in section 11 or in section 18.

The preliminary prospectus must contain the information that is to be set forth in the final version of the prospectus except such information as may be omitted under the regulations.

The Authority shall issue a receipt upon the filing of a preliminary prospectus.

1982, c. 48, s. 20; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

21. From the time a receipt for a preliminary prospectus is obtained, and until a receipt for the prospectus in its final version is obtained, it is permissible, notwithstanding sections 11, 12 and 16,

(1)  to forward a preliminary prospectus to any person;

(2)  to distribute an advertising document not prohibited by regulation, provided it adequately reflects the information presented in the preliminary prospectus, without distorting it by selective presentation or by adding misleading statements;

(3)  to solicit prospective subscribers or purchasers without accepting any undertaking on their part.

1982, c. 48, s. 21.

22. The document mentioned in paragraph 2 of section 21 must refer to the preliminary prospectus in the manner prescribed by regulation and give the conditions under which the preliminary prospectus is available to the public.

1982, c. 48, s. 22.

23. (Repealed).

1982, c. 48, s. 23; 2006, c. 50, s. 17.

24. (Repealed).

1982, c. 48, s. 24; 2006, c. 50, s. 17.

DIVISION III.1

Repealed, 2001, c. 38, s. 10.

1984, c. 41, s. 8; 2001, c. 38, s. 10.

24.1. (Repealed).

1984, c. 41, s. 8; 2001, c. 38, s. 10.

24.2. (Repealed).

1984, c. 41, s. 8; 2001, c. 38, s. 10.

DIVISION IV AMENDMENT TO THE PROSPECTUS

25. An amendment to a prospectus or preliminary prospectus is to be made in accordance with the conditions determined by regulation.

The distribution of additional securities through an amendment to a prospectus filed for that purpose is to be conducted in accordance with the conditions determined by regulation.

1982, c. 48, s. 25; 1990, c. 77, s. 5; 2006, c. 50, s. 18.

26. (Repealed).

1982, c. 48, s. 26; 2006, c. 50, s. 19.

27. (Repealed).

1982, c. 48, s. 27; 1984, c. 41, s. 9; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 19.

28. (Repealed).

1982, c. 48, s. 28; 1984, c. 41, s. 10; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 19.

DIVISION V SENDING OF PROSPECTUS, RIGHT OF RESCISSION AND DISTRIBUTION PROCESS

2006, c. 50, s. 20.

29. A dealer who receives an order to subscribe for or purchase a security offered in a distribution made in accordance with this chapter shall send to the applicant a copy of the prospectus and any amendment thereto, not later than the second working day after the subscription or purchase.

However, a dealer acting solely as agent for his client and who receives no remuneration, even indirectly, from the issuer or the vendor is not bound by the first paragraph.

This section does not apply to an order to subscribe for or purchase a security of a mutual fund traded on an exchange or an alternative trading system.

1982, c. 48, s. 29; 2016, c. 7, s. 155.

30. A person who subscribes for or purchases from a dealer securities offered in a distribution may unilaterally rescind the subscription or the contract merely by transmitting a notice of rescission to the dealer within two days after receipt of the prospectus, any other document, prescribed by regulation, standing in lieu of a prospectus or any amendment to the prospectus or to such a document. The rescission has effect by operation of law from receipt of the notice.

1982, c. 48, s. 30; 1987, c. 40, s. 2; 2011, c. 26, s. 71.

31. Section 30 has no effect if the subscriber or purchaser is himself a dealer or if he disposes of the securities during the time for rescission.

1982, c. 48, s. 31.

32. The addressee is presumed to have received, in the ordinary course of mail, the copy of the prospectus or the notice of rescission mailed to him.

1982, c. 48, s. 32.

DIVISION VI

Heading repealed, 2009, c. 25, s. 7.

2009, c. 25, s. 7.

33. (Repealed).

1982, c. 48, s. 33; 1990, c. 77, s. 6; 1992, c. 35, s. 1; 2001, c. 38, s. 11; 2006, c. 50, s. 23.

34. (Repealed).

1982, c. 48, s. 34; 1990, c. 77, s. 7; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 23.

35. (Repealed).

1982, c. 48, s. 35; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 23.

36. (Repealed).

1982, c. 48, s. 36; 2006, c. 50, s. 23.

37. In case of doubt, the Authority shall decide whether a distribution of a security has ceased or is still in progress.

No appeal lies from the decision.

1982, c. 48, s. 37; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

38. The Authority may order that a distribution cease in the cases prescribed in section 15 or if it is in the public interest to do so.

1982, c. 48, s. 38; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 24; 2009, c. 25, s. 8.

39. The Authority may require that the content of the order made under section 38 be communicated under such conditions as it may determine to all the persons to whom the prospectus has been sent.

1982, c. 48, s. 39; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

40. Where a third person proposes to make a distribution of the securities of an issuer, the Authority may order the issuer to provide the documents and information necessary to prepare the prospectus or any other document in lieu thereof.

1982, c. 48, s. 40; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

40.1. Every prospectus of any type, document authorized by the Authority for use in lieu of a prospectus, offering memorandum prescribed by regulation, risk acknowledgment form prescribed by regulation, take-over bid circular, take-over bid, directors’ circular and individual officer’s or director’s circular regarding a take-over bid or issuer bid as well as any document required by regulation to be incorporated by reference shall be drawn up in French only or in French and English.

1983, c. 56, s. 44; 1984, c. 41, s. 12; 2002, c. 45, s. 696; 2004, c. 37, s. 4; 2006, c. 50, s. 25.

CHAPTER II EXEMPTIONS

DIVISION I EXEMPTIONS DUE TO THE NATURE OF THE SECURITIES

41. No prospectus is required for the distribution of the following securities:

(1)  a debt security guaranteed by the Gouvernement du Québec, the Government of Canada or the government of a Canadian province or territory;

(2)  a debt security issued or guaranteed by

(a)  a municipality, a metropolitan community, a school service centre, a school board or the Comité de gestion de la taxe scolaire de l’île de Montréal;

(b)  a transit authority established under an Act of Québec;

(c)  a public institution or regional council within the meaning of the Act respecting health services and social services for Cree Native persons (chapter S-5) or a public institution or a health and social services agency referred to in the Act respecting health services and social services (chapter S-4.2);

(d)  a Québec university;

(e)  a general and vocational college;

(f)  a fabrique constituted under the Act respecting fabriques (chapter F-1);

(g)  an intermunicipal management board;

(3)  (paragraph repealed).

1982, c. 48, s. 41; 1984, c. 41, s. 13; 1988, c. 84, s. 700; 1990, c. 85, s. 120; 1992, c. 21, s. 357, s. 375; 1993, c. 67, s. 122; 1994, c. 23, s. 23; 1996, c. 2, s. 988; 1999, c. 40, s. 327; 1999, c. 34, s. 60; 2000, c. 56, s. 218; 2002, c. 75, s. 33; 2004, c. 37, s. 5; 2005, c. 32, s. 300, s. 308; 2011, c. 16, s. 194; 2013, c. 18, s. 102; 2020, c. 1, s. 309.

42. The exemption provided for in paragraph 2 of section 41 presupposes the existence of one of the following conditions:

(1)  the person concerned has the power to levy a tax on landed property located in a Canadian province or territory;

(2)  the person concerned may issue debt only under the supervision of a department or public body established pursuant to an Act of Canada or of a Canadian province or territory;

(3)  the National Assembly votes annual appropriations for repayment of the debt and payment of interest.

1982, c. 48, s. 42; 1982, c. 62, s. 143; 1999, c. 40, s. 327; 2004, c. 37, s. 6.

DIVISION II EXEMPTIONS DUE TO THE NATURE OF THE DISTRIBUTION

43. No prospectus is required where a distribution of securities is made to an accredited investor determined by regulation and the distribution meets the conditions prescribed by regulation.

1982, c. 48, s. 43; 1999, c. 40, s. 327; 2004, c. 37, s. 7; 2006, c. 50, s. 27.

44. (Repealed).

1982, c. 48, s. 44; 1987, c. 95, s. 402; 1988, c. 64, s. 587; 1988, c. 84, s. 700; 1989, c. 38, s. 319; 1990, c. 85, s. 121; 1996, c. 2, s. 989; 1999, c. 40, s. 327; 2000, c. 56, s. 218; 2000, c. 29, s. 675; 2002, c. 45, s. 624; 2002, c. 75, s. 33; 2002, c. 45, s. 624; 2004, c. 37, s. 90; 2004, c. 37, s. 8.

45. (Repealed).

1982, c. 48, s. 45; 1987, c. 95, s. 402; 2004, c. 37, s. 8.

46. (Repealed).

1982, c. 48, s. 46; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2004, c. 37, s. 8.

47. (Repealed).

1982, c. 48, s. 47; 1984, c. 41, s. 14; 1987, c. 40, s. 3; 1990, c. 77, s. 8; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2004, c. 37, s. 8.

47.1. (Repealed).

1984, c. 41, s. 14; 1985, c. 30, s. 98; 2004, c. 37, s. 8.

48. (Repealed).

1982, c. 48, s. 48; 1984, c. 41, s. 15; 1990, c. 77, s. 9; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2004, c. 37, s. 8.

48.1. (Repealed).

1984, c. 41, s. 15; 1990, c. 77, s. 10; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2004, c. 37, s. 8.

48.2. (Repealed).

1984, c. 41, s. 15; 2004, c. 37, s. 8.

49. (Repealed).

1982, c. 48, s. 49; 1984, c. 41, s. 16; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2004, c. 37, s. 8.

50. (Repealed).

1982, c. 48, s. 50; 2001, c. 38, s. 14; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2004, c. 37, s. 8.

51. (Repealed).

1982, c. 48, s. 51; 1984, c. 41, s. 17; 2004, c. 37, s. 8.

52. (Repealed).

1982, c. 48, s. 52; 1984, c. 41, s. 18; 1990, c. 77, s. 12; 2000, c. 29, s. 676; 2004, c. 37, s. 8.

53. (Repealed).

1982, c. 48, s. 53; 1990, c. 77, s. 13; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2004, c. 37, s. 8.

53.1. (Repealed).

1990, c. 77, s. 14; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2004, c. 37, s. 8.

54. (Repealed).

1982, c. 48, s. 54; 1992, c. 35, s. 3; 2004, c. 37, s. 8.

55. (Repealed).

1982, c. 48, s. 55; 2004, c. 37, s. 8.

56. (Repealed).

1982, c. 48, s. 56; 2004, c. 37, s. 8.

56.1. (Repealed).

1984, c. 41, s. 19; 2004, c. 37, s. 8.

DIVISION III

Repealed, 2004, c. 37, s. 8.

2004, c. 37, s. 8.

57. (Repealed).

1982, c. 48, s. 57; 1984, c. 41, s. 20; 2001, c. 38, s. 15; 2004, c. 37, s. 8.

58. (Repealed).

1982, c. 48, s. 58; 1984, c. 41, s. 21; 1990, c. 77, s. 15; 2001, c. 38, s. 16; 2004, c. 37, s. 8.

59. (Repealed).

1982, c. 48, s. 59; 2001, c. 38, s. 17; 2004, c. 37, s. 8.

59.1. (Repealed).

1984, c. 41, s. 22; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2004, c. 37, s. 8.

60. (Repealed).

1982, c. 48, s. 60; 2001, c. 38, s. 18; 2004, c. 37, s. 8.

61. (Repealed).

1982, c. 48, s. 61; 2001, c. 38, s. 19; 2004, c. 37, s. 8.

62. (Repealed).

1982, c. 48, s. 62; 2004, c. 37, s. 8.

63. (Repealed).

1982, c. 48, s. 63; 1987, c. 40, s. 4; 2004, c. 37, s. 8.

CHAPTER III SPECIAL REGULATORY SCHEMES

64. A securities distribution to which a special disclosure scheme established by regulation applies may be made by an issuer, provided that the issuer complies with the requirements of the special scheme concerning the information that must be contained in the documents to be filed with the Authority or sent to investors and with the conditions subject to which a document may stand in lieu of a prospectus.

1982, c. 48, s. 64; 2001, c. 38, s. 20; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

65. (Repealed).

1982, c. 48, s. 65; 1984, c. 41, s. 23.

66. In the case of an investment contract, the Authority may designate the persons who are to be liable for the obligations imposed on the issuer.

1982, c. 48, s. 66; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

67. (Repealed).

1982, c. 48, s. 67; 1987, c. 40, s. 5; 1992, c. 35, s. 4; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2008, c. 7, s. 138; 2008, c. 24, s. 198.

TITLE III DISCLOSURE REQUIREMENTS

CHAPTER I REPORTING ISSUER

68. A reporting issuer is an issuer that has made a distribution of securities to the public; a reporting issuer is subject to the continuous disclosure requirements of Chapter II of this title.

An issuer is deemed to have made a distribution of securities to the public where

(1)  a prospectus has been filed in respect of one of its securities and a receipt issued by the Authority;

(2)  its securities, offered as consideration in a take-over bid, have been described in a circular filed with the Authority;

(3)  any of its securities has been listed on a stock exchange in Québec at any time from 6 April 1983;

(4)  its securities have been distributed pursuant to an agreement, merger, amalgamation or reorganization or a similar operation involving at least one reporting issuer;

(5)  its existence is the result of the continuance of an issuer contemplated in subparagraphs 1 to 4;

(6)  it is contemplated in section 68.1 or 338;

(7)  it is so determined by regulation;

(8)  it is so designated by the Authority in accordance with section 272.2 or criteria determined by regulation.

An issuer who files a prospectus subject to a receipt issued by the Authority for the sole purpose of becoming a reporting issuer is also deemed to have made a distribution of securities to the public. The prospectus must contain the information and certificates prescribed by regulation and disclose all the material facts about the securities already issued. The rules specified for a prospectus in Title II do not apply to the prospectus.

1982, c. 48, s. 68; 1984, c. 41, s. 24; 1990, c. 77, s. 16; 2001, c. 38, s. 21; 2002, c. 45, s. 696; 2004, c. 37, s. 9; 2006, c. 50, s. 28; 2008, c. 7, s. 139; 2013, c. 18, s. 103.

68.1. An issuer subject to equivalent continuous disclosure requirements established by another legislative authority may apply to the Authority to become a reporting issuer and to have the period for which it has fulfilled the requirements taken into account.

The issuer shall attach to its application the continuous disclosure documents already filed, since the beginning of the last financial year, with the competent authorities, and a certificate from them establishing that it is subject to the continuous disclosure requirements and the number of years for which it has fulfilled the requirements.

Upon approval of the application, holders of securities of the issuer may avail themselves of the exemptions prescribed by regulation. If the issuer has already filed a prospectus in the regular form in another province or a territory of Canada, and has been meeting the continuous disclosure requirements of that province for one year, the Authority may authorize it to prepare a simplified prospectus, provided the additional information required by the Authority is included therein.

1984, c. 41, s. 25; 2002, c. 45, s. 696; 2004, c. 37, s. 10.

69. On application by a reporting issuer, the Authority may revoke the issuer’s status as a reporting issuer or, on the conditions it determines, release the issuer from all or part of the continuous disclosure requirements of Chapter II of this Title.

1982, c. 48, s. 69; 1984, c. 41, s. 26; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 29.

69.1. An issuer that has become a reporting issuer following the filing of a prospectus for which a receipt was issued by the Authority may, where the distribution in question does not result in the anticipated issue of securities, apply to the Authority to have his status as a reporting issuer revoked.

An issuer that has become a reporting issuer as a result of a take-over bid circular filed with the Authority may, where the take-over bid does not result in the anticipated take-over, apply to the Authority to have his status as a reporting issuer revoked.

In each of the above cases, the Authority may revoke the issuer’s status as a reporting issuer or, on such conditions as it may determine, release the issuer from all or part of the continuous disclosure requirements of Chapter II of this Title.

1990, c. 77, s. 17; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 30.

70. The Authority shall keep a public register of reporting issuers.

1982, c. 48, s. 70; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

71. The Authority may publish a list of reporting issuers that have been determined to be in default of a requirement of this Act or a regulation made under this Act.

1982, c. 48, s. 71; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 31.

71.1. In accordance with the rules applicable to an accountant’s audit of the affairs of any person subject to this Act, an accounting firm that audits the financial statements of a reporting issuer must participate in the inspection program of a body that has entered into an agreement to that effect with the Authority.

2009, c. 58, s. 92.

71.2. Sections 74 to 84 and 86 to 91 of the Act respecting the regulation of the financial sector (chapter E-6.1) apply to the body described in section 71.1, with the necessary modifications and in accordance with the terms of the agreement mentioned in section 71.1.

2009, c. 58, s. 92; 2018, c. 23, s. 811.

71.3. An accounting firm that is directly affected by a decision made by a body described in section 71.1 may, within 30 days, apply for a review of the decision to the Financial Markets Administrative Tribunal established under section 92 of the Act respecting the regulation of the financial sector (chapter E-6.1).

2009, c. 58, s. 92; 2016, c. 7, s. 179; 2018, c. 23, s. 811.

72. (Repealed).

1982, c. 48, s. 72; 2006, c. 50, s. 32.

CHAPTER II CONTINUOUS DISCLOSURE AND GOVERNANCE

2009, c. 58, s. 93.

73. A reporting issuer shall provide periodic disclosure about its business and internal affairs, including its governance practices, timely disclosure of a material change and any other disclosure prescribed by regulation in accordance with the conditions determined by regulation.

1982, c. 48, s. 73; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2001, c. 38, s. 22; 2007, c. 15, s. 1; 2006, c. 50, s. 33; 2009, c. 58, s. 94.

73.1. A reporting issuer must organize its affairs in accordance with the governance rules prescribed by regulation.

2009, c. 58, s. 95.

74. An issuer that is not a reporting issuer shall provide any disclosure prescribed by regulation in accordance with the conditions determined by regulation.

1982, c. 48, s. 74; 2006, c. 50, s. 33.

75. (Replaced).

1982, c. 48, s. 75; 1984, c. 41, s. 27; 2001, c. 38, s. 24; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 33.

76. (Replaced).

1982, c. 48, s. 76; 1984, c. 41, s. 28; 2001, c. 38, s. 25; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 33.

77. (Replaced).

1982, c. 48, s. 77; 2001, c. 38, s. 26; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 33.

78. (Replaced).

1982, c. 48, s. 78; 1984, c. 41, s. 29; 2001, c. 38, s. 27; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 33.

79. (Replaced).

1982, c. 48, s. 79; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 33.

80. (Replaced).

1982, c. 48, s. 80; 1984, c. 41, s. 30; 2001, c. 38, s. 28; 2006, c. 50, s. 33.

80.1. (Repealed).

1990, c. 77, s. 18; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2004, c. 37, s. 11.

80.2. (Replaced).

1992, c. 35, s. 5; 2006, c. 50, s. 33.

81. (Replaced).

1982, c. 48, s. 81; 1999, c. 40, s. 327; 2006, c. 50, s. 33.

82. (Replaced).

1982, c. 48, s. 82; 1984, c. 41, s. 31; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 33.

82.1. (Replaced).

1984, c. 41, s. 32; 1990, c. 77, s. 19; 1999, c. 40, s. 327; 2006, c. 50, s. 33.

83. (Replaced).

1982, c. 48, s. 83; 2006, c. 50, s. 33.

83.1. (Replaced).

1990, c. 77, s. 20; 2006, c. 50, s. 33.

CHAPTER III

Heading repealed, 2006, c. 50, s. 34.

2001, c. 38, s. 29; 2007, c. 15, s. 2; 2006, c. 50, s. 34.

84. (Repealed).

1982, c. 48, s. 84; 2001, c. 38, s. 30; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2007, c. 15, s. 2; 2006, c. 50, s. 35.

85. (Repealed).

1982, c. 48, s. 85; 1984, c. 41, s. 33; 2001, c. 38, s. 31; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2007, c. 15, s. 2; 2006, c. 50, s. 35.

86. (Repealed).

1982, c. 48, s. 86; 2001, c. 38, s. 32.

87. (Repealed).

1982, c. 48, s. 87; 2001, c. 38, s. 33; 2006, c. 50, s. 35.

88. (Repealed).

1982, c. 48, s. 88; 2001, c. 38, s. 34.

CHAPTER IV INSIDER REPORTS

89. “Insider” means

(1)  every director or officer of an issuer;

(2)  every director or officer of a subsidiary of an issuer;

(3)  a person that exercises control over more than 10% of the voting rights attached to all outstanding voting securities of an issuer other than securities underwritten in the course of a distribution;

(4)  an issuer that holds any of its securities; or

(5)  a person prescribed by regulation or designated as an insider under section 272.2.

“Insider” also means a director or officer of an insider of an issuer.

1982, c. 48, s. 89; 1984, c. 41, s. 34; 2006, c. 50, s. 36.

89.1. “Economic interest” means a right to receive or the opportunity to participate in a reward, benefit or return from a security, or exposure to a risk of a financial loss in respect of a security.

2006, c. 50, s. 36.

89.2. “Related financial instrument” means

(1)  any instrument, agreement or security whose value, market price or payment obligations are based on the value, market price or payment obligations of a security; and

(2)  any other instrument, agreement or understanding that affects, directly or indirectly, a person’s economic interest in a security.

2006, c. 50, s. 36.

89.3. An insider of a reporting issuer other than a mutual fund shall, in accordance with the conditions determined by regulation, file a report disclosing, in particular, any control exercised by the insider over the reporting issuer’s securities, any interest in, or right or obligation associated with, a related financial instrument of the issuer’s securities and make other disclosure prescribed by regulation

2006, c. 50, s. 36.

90. The person who is the owner of securities or has direction over them is the person who exercises control over them.

1982, c. 48, s. 90.

91. Every person who may exercise as he sees fit voting rights attaching to securities he does not own is deemed to exercise control over those securities.

1982, c. 48, s. 91.

92. An insider of a reporting issuer who acquires or disposes of a related financial instrument in respect of a security of that issuer is deemed to effect a change in his control of the security. The same applies to an insider of a reporting issuer who purchases or disposes of a derivative within the meaning of the Derivatives Act (chapter I-14.01) whose underlying interest is a security of the reporting issuer.

The Authority may, by regulation, determine any other securities transaction effecting a change in the control of a security.

1982, c. 48, s. 92; 2002, c. 45, s. 625; 2004, c. 37, s. 90; 2008, c. 24, s. 199; 2006, c. 50, s. 37.

93. (Repealed).

1982, c. 48, s. 93; 1984, c. 41, s. 35.

94. When an issuer, reporting or not, becomes an insider of a reporting issuer, the officers and the directors of the former issuer are deemed to have been insiders of the other reporting issuer for the previous 6 months or for such shorter period as they have been officers or directors of the former issuer.

If the former issuer is a reporting issuer, the officers and the directors of the latter issuer are also deemed to be insiders of the former issuer, and the same conditions apply.

1982, c. 48, s. 94; 2008, c. 7, s. 140; 2009, c. 25, s. 9.

95. The amalgamation of issuers or the purchase by an issuer of all or substantially all of the assets of another issuer or of a subsidiary thereof, gives rise, in respect of officers and directors, to the presumptions set forth in section 94.

Section 94 applies only when at least one reporting issuer was a party to the amalgamation or reorganization.

1982, c. 48, s. 95; 2008, c. 7, s. 141; 2009, c. 25, s. 9.

96. A person who becomes an insider of a reporting issuer shall disclose to the Authority, if such is the case, his control over the securities of the issuer, according to the terms and conditions, in the form and within the time prescribed by regulation.

1982, c. 48, s. 96; 2001, c. 38, s. 35; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

97. An insider of a reporting issuer shall file a report in accordance with the conditions, in the form and within the time prescribed by regulation, disclosing any change in his control over the securities of the issuer.

1982, c. 48, s. 97; 1987, c. 40, s. 6.

98. Officers and directors deemed to be insiders under section 94 or 95 shall, within the time fixed by regulation, file the report that sections 96 and 97 would have required for the period covered by the presumption.

1982, c. 48, s. 98; 2001, c. 38, s. 36; 2008, c. 7, s. 142; 2009, c. 25, s. 9.

99. (Repealed).

1982, c. 48, s. 99; 1984, c. 41, s. 36; 1987, c. 40, s. 30; 2006, c. 50, s. 38.

100. (Repealed).

1982, c. 48, s. 100; 1984, c. 41, s. 36; 2006, c. 50, s. 38.

101. (Repealed).

1982, c. 48, s. 101; 1984, c. 41, s. 37.

102. (Repealed).

1982, c. 48, s. 102; 2006, c. 50, s. 38.

103. (Repealed).

1982, c. 48, s. 103; 2006, c. 50, s. 38.

CHAPTER V

Repealed, 2006, c. 50, s. 39.

2006, c. 50, s. 39.

103.1. (Repealed).

1984, c. 41, s. 38; 1999, c. 40, s. 327; 2001, c. 38, s. 37; 2006, c. 50, s. 39.

104. (Repealed).

1982, c. 48, s. 104; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 39.

105. (Repealed).

1982, c. 48, s. 105; 1999, c. 40, s. 327; 2006, c. 50, s. 39.

106. (Repealed).

1982, c. 48, s. 106; 1999, c. 40, s. 327; 2006, c. 50, s. 39.

107. (Repealed).

1982, c. 48, s. 107; 2006, c. 50, s. 39.

108. (Repealed).

1982, c. 48, s. 108; 1984, c. 41, s. 39; 2001, c. 38, s. 38; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 39.

109. (Repealed).

1982, c. 48, s. 109; 2006, c. 50, s. 39.

TITLE III.1 INVESTMENT FUNDS

2006, c. 50, s. 40.

CHAPTER I GENERAL PROVISIONS

2016, c. 7, s. 156.

109.1. (Repealed).

2006, c. 50, s. 40; 2009, c. 25, s. 10.

109.2. (Repealed).

2006, c. 50, s. 40; 2009, c. 25, s. 10.

109.3. (Repealed).

2006, c. 50, s. 40; 2009, c. 25, s. 10.

109.4. (Repealed).

2006, c. 50, s. 40; 2009, c. 25, s. 10.

109.5. An investment fund shall comply with the operating rules prescribed by regulation for the management, stewardship, safekeeping and composition of the assets of investment funds, including governance rules and conflict of interest management rules.

2006, c. 50, s. 40.

109.6. Despite the Trust Companies and Savings Companies Act (chapter S-29.02), the Authority may authorize a legal person other than a trust company governed by that Act to act as trustee of an investment fund in accordance with the Civil Code.

2006, c. 50, s. 40; 2018, c. 23, s. 811.

109.6.1. Any document referred to in this Title that is sent by mail is presumed to have been received by the addressee in the ordinary course of mail.

2016, c. 7, s. 157.

CHAPTER II SENDING OF DOCUMENTS DURING SUBSCRIPTION FOR OR PURCHASE OF CERTAIN SECURITIES

2016, c. 7, s. 157.

109.7. A dealer who receives, on behalf of a client, an order to subscribe for or purchase securities of a mutual fund traded on an exchange or an alternative trading system is required to send the document prescribed by regulation to the client within the time set by the regulation.

2016, c. 7, s. 157.

CHAPTER III RIGHTS OF HOLDERS OF MUTUAL FUND SECURITIES

2016, c. 7, s. 157.

109.8. A holder of mutual fund securities may unilaterally demand the purchase or repurchase of his securities by sending a notice to that effect

(1)  to the dealer referred to in section 109.7 who sent the notice of execution prescribed by regulation to the holder; or

(2)  to the dealer who sent the notice of execution prescribed by regulation to the holder in any other case.

The notice must be sent to the dealer within two days after receipt of the notice of execution.

This section does not apply to holders who are themselves dealers.

2016, c. 7, s. 157.

109.9. The purchase or repurchase of securities under section 109.8 is carried out by operation of law on receipt of the holder’s notice by the dealer.

The dealer shall pay the holder the price paid for the securities at the time of the subscription or purchase or, if it is less, the securities’ net asset value at the time the dealer received the holder’s notice. The dealer shall also reimburse the commissions and subscription fees paid by the holder.

2016, c. 7, s. 157.

TITLE IV TAKE-OVER BIDS AND ISSUER BIDS

1984, c. 41, s. 40; 2006, c. 50, s. 41.

110. “Take-over bid” means a direct or indirect offer to acquire securities that is made by a person other than the issuer of the securities and that falls in a class of offers to acquire determined by regulation.

1982, c. 48, s. 110; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

111. “Issuer bid” means a direct or indirect offer to acquire or redeem securities or a direct or indirect transaction to that end that is made by the issuer of the securities and that falls in a class of offers to acquire or redeem determined by regulation.

1982, c. 48, s. 111; 1984, c. 41, s. 40; 1999, c. 40, s. 327; 2006, c. 50, s. 41.

112. A person making a take-over bid or issuer bid, alone or with other persons acting in concert, shall conduct the bid in accordance with the conditions determined by regulation.

1982, c. 48, s. 112; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

113. When a take-over bid has been made, the directors of the offeree issuer shall determine whether to recommend acceptance or rejection of the bid or determine not to make a recommendation, and shall make the recommendation or issue a statement that they are not making a recommendation, in accordance with the conditions determined by regulation.

1982, c. 48, s. 113; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

114. An individual director or officer of the offeree issuer may recommend acceptance or rejection of the bid in accordance with the conditions determined by regulation.

1982, c. 48, s. 114; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

115. A person that, by directly or indirectly acquiring ownership of, or control over, the securities of a class or type prescribed by regulation of a reporting issuer, comes to hold, with another person acting in concert, the percentage prescribed by regulation of outstanding securities of that class or type shall, with that other person, make and file disclosure in accordance with the conditions determined by regulation and comply with any prohibitions determined by regulation on transactions in securities of the reporting issuer.

1982, c. 48, s. 115; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

116. (Repealed).

1982, c. 48, s. 116; 1984, c. 41, s. 40; 1990, c. 77, s. 21.

117. (Replaced).

1982, c. 48, s. 117; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

118. (Replaced).

1982, c. 48, s. 118; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

119. (Replaced).

1982, c. 48, s. 119; 1984, c. 41, s. 40; 1987, c. 40, s. 31; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 41.

120. (Replaced).

1982, c. 48, s. 120; 1984, c. 41, s. 40; 1990, c. 77, s. 22; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 41.

121. (Replaced).

1982, c. 48, s. 121; 1984, c. 41, s. 40; 1987, c. 40, s. 31; 1992, c. 35, s. 6; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 41.

122. (Replaced).

1982, c. 48, s. 122; 1984, c. 41, s. 40; 1987, c. 40, s. 31; 2006, c. 50, s. 41.

123. (Replaced).

1982, c. 48, s. 123; 1984, c. 41, s. 40; 1987, c. 40, s. 7; 2006, c. 50, s. 41.

124. (Replaced).

1982, c. 48, s. 124; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

125. (Replaced).

1982, c. 48, s. 125; 1984, c. 41, s. 40; 1999, c. 40, s. 327; 2006, c. 50, s. 41.

126. (Replaced).

1982, c. 48, s. 126; 1984, c. 41, s. 40; 1987, c. 40, s. 31; 2001, c. 38, s. 39; 2006, c. 50, s. 41.

127. (Replaced).

1982, c. 48, s. 127; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

128. (Replaced).

1982, c. 48, s. 128; 1984, c. 41, s. 40; 2001, c. 38, s. 40; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 41.

129. (Replaced).

1982, c. 48, s. 129; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

129.1. (Replaced).

2001, c. 38, s. 41; 2006, c. 50, s. 41.

130. (Replaced).

1982, c. 48, s. 130; 1984, c. 41, s. 40; 1987, c. 40, s. 8; 2001, c. 38, s. 42; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 41.

131. (Replaced).

1982, c. 48, s. 131; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

132. (Replaced).

1982, c. 48, s. 132; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

133. (Replaced).

1982, c. 48, s. 133; 1984, c. 41, s. 40; 2001, c. 38, s. 43; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 41.

134. (Replaced).

1982, c. 48, s. 134; 1984, c. 41, s. 40; 2001, c. 38, s. 44; 2006, c. 50, s. 41.

135. (Replaced).

1982, c. 48, s. 135; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

136. (Replaced).

1982, c. 48, s. 136; 1984, c. 41, s. 40; 2001, c. 38, s. 45; 2006, c. 50, s. 41.

137. (Replaced).

1982, c. 48, s. 137; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

138. (Replaced).

1982, c. 48, s. 138; 1984, c. 41, s. 40; 1990, c. 77, s. 23; 2001, c. 38, s. 46; 2006, c. 50, s. 41.

139. (Replaced).

1982, c. 48, s. 139; 1984, c. 41, s. 40; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 41.

140. (Replaced).

1982, c. 48, s. 140; 1984, c. 41, s. 40; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 41.

141. (Replaced).

1982, c. 48, s. 141; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

142. (Replaced).

1982, c. 48, s. 142; 1984, c. 41, s. 40; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 41.

142.1. (Replaced).

1987, c. 40, s. 9; 2006, c. 50, s. 41.

143. (Replaced).

1982, c. 48, s. 143; 1984, c. 41, s. 40; 1987, c. 40, s. 31; 2006, c. 50, s. 41.

144. (Replaced).

1982, c. 48, s. 144; 1984, c. 41, s. 40; 1987, c. 40, s. 31; 2006, c. 50, s. 41.

145. (Replaced).

1982, c. 48, s. 145; 1984, c. 41, s. 40; 1992, c. 35, s. 7; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 41.

146. (Replaced).

1982, c. 48, s. 146; 1984, c. 41, s. 40; 2006, c. 50, s. 41.

147. (Replaced).

1982, c. 48, s. 147; 1984, c. 41, s. 40; 1992, c. 35, s. 8; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 41.

147.1. (Replaced).

1984, c. 41, s. 40; 2006, c. 50, s. 41.

147.2. (Replaced).

1984, c. 41, s. 40; 2006, c. 50, s. 41.

147.3. (Replaced).

1984, c. 41, s. 40; 2001, c. 38, s. 47; 2006, c. 50, s. 41.

147.4. (Replaced).

1984, c. 41, s. 40; 2001, c. 38, s. 48; 2006, c. 50, s. 41.

147.5. (Replaced).

1984, c. 41, s. 40; 1987, c. 40, s. 10; 2001, c. 38, s. 49; 2006, c. 50, s. 41.

147.6. (Replaced).

1984, c. 41, s. 40; 1987, c. 40, s. 11; 2001, c. 38, s. 50; 2006, c. 50, s. 41.

147.7. (Replaced).

1984, c. 41, s. 40; 2001, c. 38, s. 51; 2006, c. 50, s. 41.

147.8. (Replaced).

1984, c. 41, s. 40; 1987, c. 40, s. 12; 2001, c. 38, s. 52; 2006, c. 50, s. 41.

147.9. (Replaced).

1984, c. 41, s. 40; 1987, c. 40, s. 13; 2001, c. 38, s. 53; 2006, c. 50, s. 41.

147.10. (Replaced).

1984, c. 41, s. 40; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 41.

147.11. (Replaced).

1984, c. 41, s. 40; 1987, c. 40, s. 14; 1999, c. 40, s. 327; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 41.

147.12. (Replaced).

1984, c. 41, s. 40; 1987, c. 40, s. 15; 2006, c. 50, s. 41.

147.13. (Repealed).

1984, c. 41, s. 40; 1987, c. 40, s. 31.

147.14. (Replaced).

1984, c. 41, s. 40; 1987, c. 40, s. 31; 2006, c. 50, s. 41.

147.15. (Replaced).

1984, c. 41, s. 40; 1987, c. 40, s. 16; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 41.

147.16. (Replaced).

1984, c. 41, s. 40; 1987, c. 40, s. 17; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 41.

147.17. (Repealed).

1984, c. 41, s. 40; 1987, c. 40, s. 31.

147.18. (Repealed).

1984, c. 41, s. 40; 1987, c. 40, s. 31.

147.19. (Replaced).

1984, c. 41, s. 40; 2006, c. 50, s. 41.

147.20. (Replaced).

1984, c. 41, s. 40; 1987, c. 40, s. 18; 1990, c. 77, s. 24; 2006, c. 50, s. 41.

147.21. (Replaced).

1984, c. 41, s. 40; 2001, c. 38, s. 54; 2004, c. 37, s. 12; 2006, c. 50, s. 41.

147.22. (Replaced).

1984, c. 41, s. 40; 2006, c. 50, s. 41.

147.23. (Replaced).

1984, c. 41, s. 40; 2006, c. 50, s. 41.

TITLE V REGISTRATION

2009, c. 25, s. 11.

CHAPTER I GENERAL PROVISIONS

2009, c. 25, s. 12.

148. No person may act as a dealer, adviser or investment fund manager unless the person is registered as such.

1982, c. 48, s. 148; 1998, c. 37, s. 533; 2002, c. 45, s. 696; O.C. 1366-2003, s. 14; 2004, c. 37, s. 90; 2009, c. 25, s. 13.

148.1. The Authority may require that the securities activities of a candidate or class of candidates be pursued through a subsidiary.

2001, c. 38, s. 55; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2008, c. 24, s. 200.

148.2. The first paragraph of section 77 and the second paragraph of section 81 of the Act respecting the distribution of financial products and services (chapter D-9.2) apply, with the necessary modifications, to dealers registered as mutual fund dealers or scholarship plan dealers.

2009, c. 25, s. 14.

148.3. Despite section 23 of the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2), a dealer registered as a mutual fund dealer or scholarship plan dealer may receive deposits on behalf of a deposit institution authorized under that Act or a member bank of the Canada Deposit Insurance Corporation through the dealer’s representative. No cash deposit may be received by such a representative.

All deposits so received must be deposited with the deposit institution or bank on whose behalf the dealer is acting.

2009, c. 25, s. 14; 2018, c. 23, s. 683.

149. A natural person may not act as a dealer or adviser for the account of a person subject to registration under section 148, unless the natural person is registered as a representative of that person.

The chief compliance officer or ultimate designated person of a person registered under section 148 must be registered as such. The chief compliance officer or ultimate designated person shall perform the functions prescribed by regulation.

Subject to such remunerated business as may be carried on under a government regulation made under this Act, the representative of an investment dealer, within the meaning assigned by regulation, shall not concurrently act as a representative in a financial institution’s place of business in Québec and be employed by the financial institution, unless he is a representative specialized in mutual funds or scholarship plans.

1982, c. 48, s. 149; 1989, c. 48, s. 254; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2009, c. 25, s. 15.

149.1. A representative of a mutual fund dealer or a representative of a scholarship plan dealer may, on the conditions prescribed by regulation, distribute shares, other than qualifying shares, issued by a financial services cooperative governed by the Act respecting financial services cooperatives (chapter C-67.3) that are not exempted from the application of Titles II to VIII.

2009, c. 25, s. 16.

149.2. Titles V to VI of the Act respecting the distribution of financial products and services (chapter D-9.2) apply to representatives of a mutual fund dealer and representatives of a scholarship plan dealer.

2009, c. 25, s. 16.

150. The categories of registration, the conditions to be met by candidates, the duration of registration and the rules governing the activities of registrants shall be established by regulation.

1982, c. 48, s. 150; 2001, c. 38, s. 56.

151. The Authority, after verifying that the candidate meets the conditions fixed by regulation, shall grant registration where, in its opinion,

(1)  the candidate or, in the case of a legal person, its officers and directors have the competence and integrity to ensure the protection of investors;

(2)  the candidate is solvent and, in the case of a legal person, has adequate financial resources to ensure the viability of his business.

The Authority may impose any restriction or condition it determines on the registration of a candidate, including limiting its duration.

1982, c. 48, s. 151; 1984, c. 41, s. 41; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 42, s. 111.

151.0.1. The Authority may revoke, suspend or impose restrictions or conditions on a registration if

(1)  the representative, chief compliance officer or ultimate designated person has made an assignment of property or been placed under a receiving order pursuant to the Bankruptcy and Insolvency Act (R.S.C. 1985, c. B-3);

(2)  the representative, chief compliance officer or ultimate designated person has been convicted by a court inside or outside Canada of an act or offence which, in the opinion of the Authority, is related to the activity of the representative, chief compliance officer or ultimate designated person, or has pleaded guilty to such an act or offence;

(3)  the representative, chief compliance officer or ultimate designated person has been assigned a tutor, curator or adviser; or

(4)  the registration or right to transact business has been revoked or suspended, or restrictions or conditions have been imposed on the registration or right to transact business, by the discipline committee of the Chambre de la sécurité financière established under section 284 of the Act respecting the distribution of financial products and services (chapter D-9.2) or by a body in or outside Québec that is responsible for supervising and monitoring persons authorized to act as representatives, chief compliance officers or ultimate designated persons.

As well, the Authority may suspend the registration of a representative of a mutual fund dealer or a representative of a scholarship plan dealer if the representative fails to comply with the liability insurance requirements prescribed by regulation or the compulsory professional development requirements set out in the Act respecting the distribution of financial products and services.

2009, c. 25, s. 17.

151.1. The Authority has the power to make an inspection of the affairs of a registered dealer or adviser in order to ascertain the extent to which he complies with this Act, the regulations and the policy statements.

1990, c. 77, s. 25; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

151.1.1. The Authority may inspect the affairs of an investment fund, a person acting as depositary, trustee or manager of such a fund or any other market participant determined by regulation to assess compliance with a provision of this Act or a regulation or check how any functions and powers delegated by the Authority are being exercised.

In addition, the Authority may inspect the affairs of a contingency fund in which brokers are required to participate under section 168.1 in order to verify compliance with their obligations under this Act or a regulation made under this Act.

Sections 151.2 to 151.4 apply to an inspection, with the necessary modifications.

2002, c. 45, s. 626; 2004, c. 37, s. 90; 2006, c. 50, s. 43; 2013, c. 18, s. 104.

151.2. The inspector shall, on request, justify his quality.

1990, c. 77, s. 25.

151.3. In carrying out his inspection, the inspector has the power

(1)  to enter the establishment of any dealer or adviser, during normal business hours;

(2)  to take a copy of the books, registers or other documents relating to the carrying on of the activity of dealer or adviser;

(3)  to require any information relating to the carrying on of the activity of dealer or adviser and the production of any relevant document.

1990, c. 77, s. 25.

151.4. The dealer or adviser shall give the inspector access to all books, registers or other documents relating to the carrying on of his activities.

1990, c. 77, s. 25.

151.5. The Authority may order a dealer, adviser or investment fund manager to direct an auditor, at the dealer’s, adviser’s or investment fund manager’s expense, to conduct any audit or review required by the Authority and deliver the audit or review to the Authority as soon as practicable.

2009, c. 25, s. 18.

152. The Financial Markets Administrative Tribunal may revoke or suspend the rights granted by registration, or impose restrictions or conditions on their exercise where, in its opinion, a registrant fails to comply with this Act or regulations made thereunder or if it is in the public interest to do so.

1982, c. 48, s. 152; 2002, c. 45, s. 696; 2009, c. 25, s. 19; 2009, c. 58, s. 96; 2016, c. 7, s. 179.

152.1. Despite section 318, the Authority shall suspend or, if the offence is not a first offence, may revoke the registration of a mutual fund dealer or scholarship plan dealer if the dealer fails to maintain liability insurance as prescribed by regulation.

The Authority may also suspend or, if the offence is not a first offence, revoke the registration of a mutual fund dealer or scholarship plan dealer if a representative of the dealer, other than an employee, fails to maintain liability insurance as prescribed by regulation.

2009, c. 25, s. 20.

153. A registrant wishing to cease carrying on business shall apply to the Authority to surrender his registration.

The Authority may, on the conditions it determines, suspend the registration or impose conditions or restrictions on the registration during examination of the application for surrender.

The Authority may impose such conditions as it may determine on the surrender, and shall accept it where, in its opinion, the interests of clients and investors are sufficiently protected.

The Authority remains competent in respect of any acts prior to the surrender.

1982, c. 48, s. 153; 1984, c. 41, s. 42; 1990, c. 77, s. 26; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 44.

CHAPTER II

Repealed, 2006, c. 50, s. 45.

2006, c. 50, s. 45.

154. (Repealed).

1982, c. 48, s. 154; 1984, c. 41, s. 43; 1987, c. 95, s. 402; 1988, c. 64, s. 562, s. 587; 1990, c. 77, s. 27; 1999, c. 40, s. 327; 2000, c. 29, s. 677; 2002, c. 45, s. 627; 2006, c. 50, s. 45.

155. (Repealed).

1982, c. 48, s. 155; 2006, c. 50, s. 45.

155.1. (Repealed).

1984, c. 41, s. 44; 1992, c. 35, s. 9; 2001, c. 38, s. 57; 2004, c. 37, s. 13.

156. (Repealed).

1982, c. 48, s. 156; 1987, c. 40, s. 19; 1987, c. 95, s. 402; 1988, c. 64, s. 563, s. 587; 1999, c. 40, s. 327; 2000, c. 29, s. 678; 2002, c. 45, s. 628; 2004, c. 37, s. 13.

156.1. (Repealed).

1987, c. 40, s. 20; 1999, c. 40, s. 327; 2004, c. 37, s. 13.

157. (Repealed).

1982, c. 48, s. 157; 1990, c. 77, s. 28; 2004, c. 37, s. 13.

CHAPTER III INFORMATION TO BE FURNISHED TO THE AUTHORITY

2002, c. 45, s. 629; 2004, c. 37, s. 90.

158. Every dealer, adviser or investment fund manager shall keep the books, records and other documents required by regulation.

1982, c. 48, s. 158; 2001, c. 38, s. 59; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2009, c. 25, s. 21.

159. In the cases and within the time determined by regulation, the registrant shall notify the Authority of any change in the information furnished at the time of registration.

In the cases determined by regulation, a change may be made only if the Authority agrees, or does not object, within the time and in the form prescribed by regulation. If the Authority objects, it may prescribe what is to be done.

1982, c. 48, s. 159; 2002, c. 45, s. 696; 2004, c. 37, s. 14; 2009, c. 25, s. 22.

159.0.1. The Authority may determine by regulation, in the case of a dealer, adviser or investment fund manager, which natural persons must disclose the information and documents prescribed by regulation to the Authority.

2009, c. 25, s. 23.

CHAPTER IV OBLIGATIONS OF REGISTRANTS

2009, c. 25, s. 24.

159.1. An investment fund manager shall provide any disclosure required of an investment fund under this Act or the regulations.

2009, c. 25, s. 25.

159.2. An investment fund manager shall, in the exercise of its functions, comply with the obligations set out in its constituting document, its by-laws and the law, and act within the limits of the powers conferred on it.

2009, c. 25, s. 25.

159.3. An investment fund manager shall, in the best interests of the fund and its beneficiaries or in the interest of the fulfilment of its purpose, exercise prudence, diligence and skill, and discharge its functions loyally, honestly and in good faith.

2009, c. 25, s. 25.

160. All persons registered as dealers, advisers or representatives are required to deal fairly, honestly, loyally and in good faith with their clients.

1982, c. 48, s. 160; 2001, c. 38, s. 60; 2009, c. 25, s. 26.

160.1. In their dealings with clients and in the execution of the mandates entrusted to them by their clients, all persons registered as dealers, advisers or representatives are required to act with all the care that may be expected of a knowledgeable professional acting in the same circumstances.

2001, c. 38, s. 61; 2009, c. 25, s. 27.

160.1.1. A dealer registered as a mutual fund dealer or scholarship plan dealer may share a commission the dealer receives only with another dealer or adviser governed by this Act, a firm, an independent representative or independent partnership governed by the Act respecting the distribution of financial products and services (chapter D-9.2), a broker’s or agency licence holder governed by the Real Estate Brokerage Act (chapter C-73.2), a dealer or adviser governed by the Derivatives Act (chapter I-14.01), a deposit institution authorized under the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2), a bank, an authorized foreign bank, a trust company authorized under the Trust Companies and Savings Companies Act (chapter S‐29.02), an insurer authorized under the Insurers Act (chapter A-32.1) or a federation within the meaning of the Act respecting financial services cooperatives (chapter C-67.3).

The commission is to be shared in the manner determined by regulation of the Authority.

The dealer shall enter every sharing of a commission in a register, in accordance with the regulations.

2018, c. 23, s. 684.

Not in force

160.2. (Not in force).

2004, c. 37, s. 15.

160.3. (Repealed).

2004, c. 37, s. 15; 2009, c. 25, s. 29.

161. (Repealed).

1982, c. 48, s. 161; 2009, c. 25, s. 29.

162. (Repealed).

1982, c. 48, s. 162; 2009, c. 25, s. 29.

163. (Repealed).

1982, c. 48, s. 163; 2009, c. 25, s. 29.

163.1. (Repealed).

1990, c. 77, s. 29; 2006, c. 50, s. 46; 2009, c. 25, s. 29.

164. No dealer may vote for his own account securities registered in his name but not owned by him.

A dealer shall carry out the written instructions of the owner as to the voting of securities or as to the giving of a proxy to vote.

1982, c. 48, s. 164.

165. A dealer or any other person holding the securities of a reporting issuer on behalf of clients shall forward to the owner of the securities all the documents received concerning the securities at the expense of the person designated, at the rate fixed, in the circumstances and according to the other conditions prescribed by regulation.

On request, the author of the documents shall without delay and at his own expense send the number of copies required by the dealer to discharge his obligation.

1982, c. 48, s. 165; 2001, c. 38, s. 62.

165.1. A dealer or any other person holding the securities of a reporting issuer on behalf of clients is required to provide the issuer with a list of the names and addresses of those clients, where the issuer so requests in order to discharge its obligation to send documents to those clients, and to specify the number of securities held by each client and the preferred language of correspondence, except where a client has given written instructions that such information is not to be disclosed to the issuer.

2001, c. 38, s. 63.

166. A registrant must make the statements prescribed by regulation concerning existing conflicts of interest and conflicts of interest the registrant, acting reasonably, would expect to arise between the registrant and the registrant’s clients.

1982, c. 48, s. 166; 2006, c. 50, s. 47, s. 111; 2009, c. 25, s. 30; 2009, c. 58, s. 97.

167. (Repealed).

1982, c. 48, s. 167; 2008, c. 24, s. 201.

168. Credit balances appearing in the accounts of clients and not given in guarantee are funds payable on demand; in no case may a dealer use them except to finance his working capital on the conditions prescribed by regulation.

1982, c. 48, s. 168.

168.1. A dealer shall participate in a contingency fund in the cases and on the conditions determined by regulation.

The Government may, by order, exempt any contingency fund approved by the Authority for this purpose from the application of the Insurers Act (chapter A‐32.1).

1990, c. 77, s. 30; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2018, c. 23, s. 811.

168.1.1. All dealers and advisers must process the complaints filed with them in a fair manner. To that end, they must

(1)  follow a policy for processing complaints filed by their clients and resolving disputes with them; and

(2)  keep a complaints register.

Unless such a policy is fully set out in a regulation made under paragraph 27.0.4 of section 331.1, dealers and advisers must adopt one themselves.

2002, c. 45, s. 630; 2009, c. 25, s. 31; 2018, c. 23, s. 685.

168.1.2. The complaint processing and dispute resolution policy adopted under subparagraph 1 of the first paragraph of section 168.1.1 must, in particular,

(1)  set out the characteristics that make a communication to a dealer or adviser a complaint that must be registered in the complaints register kept under subparagraph 2 of the first paragraph of section 168.1.1; and

(2)  provide for a record to be opened for each complaint and prescribe rules for keeping such records.

Dealers and advisers must make a summary of the policy, including the elements specified in subparagraphs 1 and 2 of the first paragraph, publicly available on their website, if they have one, and disseminate it by any appropriate means to reach the clientele concerned.

2002, c. 45, s. 630; 2004, c. 37, s. 90; 2008, c. 7, s. 145; 2009, c. 25, s. 32; 2018, c. 23, s. 685.

168.1.3. Within 10 days after a complaint is registered in the complaints register, the dealer or adviser must send the complainant a notice stating the complaint registration date and the complainant’s right, under section 168.1.4, to have the complaint record examined.

2002, c. 45, s. 630; 2004, c. 37, s. 16; 2008, c. 7, s. 146; 2009, c. 25, s. 32; 2018, c. 23, s. 685.

168.1.4. A complainant whose complaint has been registered in the complaints register may, if dissatisfied with the dealer’s or adviser’s processing of the complaint or the outcome, request the dealer or adviser to have the complaint record examined by the Authority.

The dealer or adviser is required to comply with the complainant’s request and send the record to the Authority.

2002, c. 45, s. 630; 2004, c. 37, s. 90; 2009, c. 25, s. 32; 2018, c. 23, s. 685.

168.1.5. The Authority shall examine the complaint records that are sent to it.

It may, with the parties’ consent, act as conciliator or mediator or designate a person to act as such.

Conciliation or mediation may not, alone or in combination, continue for more than 60 days after the date of the first conciliation or mediation session, as the case may be, unless the parties consent to it.

Conciliation and mediation are free of charge.

2002, c. 45, s. 630; 2018, c. 23, s. 685.

168.1.6. Unless the parties agree otherwise, nothing that is said or written in the course of a conciliation or mediation session may be admitted into evidence before a court of justice or before a person or body of the administrative branch exercising adjudicative functions.

A conciliator or mediator may not be compelled to disclose anything revealed or learned in the exercise of conciliation or mediation functions or to produce a document prepared or obtained in the course of such functions before a court of justice or before a person or body of the administrative branch exercising adjudicative functions.

Despite section 9 of the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A-2.1), no one has a right of access to a document contained in the conciliation or mediation record.

2018, c. 23, s. 685.

168.1.7. Despite sections 9 and 83 of the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A-2.1), the Authority may not communicate a complaint record without the authorization of the dealer or adviser that has sent it.

2018, c. 23, s. 685.

168.1.8. On the date set by the Authority, dealers and advisers shall send it a report on the complaint processing and dispute resolution policy adopted pursuant to subparagraph 1 of the first paragraph of section 168.1.1 stating the number of complaints they have registered in the complaints register and their nature.

The report must cover the period determined by the Authority.

2018, c. 23, s. 685.

CHAPTER V

Repealed, 2006, c. 50, s. 48.

2001, c. 38, s. 64; 2006, c. 50, s. 48.

168.2. (Repealed).

2001, c. 38, s. 64; 2006, c. 50, s. 48.

168.3. (Repealed).

2001, c. 38, s. 64; 2006, c. 50, s. 48.

168.4. (Repealed).

2001, c. 38, s. 64; 2006, c. 50, s. 48.

TITLE VI SELF-REGULATORY ORGANIZATIONS, SECURITIES EXCHANGE OR CLEARING ACTIVITIES , CREDIT RATING ORGANIZATIONS, BENCHMARKS AND BENCHMARK ADMINISTRATORS

2002, c. 45, s. 631; 2006, c. 50, s. 49; 2009, c. 58, s. 98; 2018, c. 23, s. 686.

169. No exchange, clearing house, central securities depositary, settlement system, information processor, matching service utility or regulation services provider may carry on securities activities in Québec unless it is recognized by the Authority.

1982, c. 48, s. 169; 2002, c. 45, s. 631; 2004, c. 37, s. 90; 2006, c. 50, s. 50; 2008, c. 24, s. 202; 2013, c. 18, s. 105.

169.1. An application for recognition or for the modification of a recognition decision must be filed with the documents and information required by the Authority.

The Authority shall publish a notice of the application in its Bulletin and invite interested persons to make representations in writing.

The second paragraph does not apply to an application for the modification of a recognition decision that does not significantly alter the activities carried on by the applicant.

2008, c. 24, s. 203; 2013, c. 18, s. 106.

170. The Authority may recognize a person referred to in section 169 on the conditions it determines.

The Authority may also require that the person be recognized as a self-regulatory organization under Title III of the Act respecting the regulation of the financial sector (chapter E-6.1) in order to carry on the person’s activities.

The organization referred to in the second paragraph shall also be subject to the provisions of this Act which are applicable to a self-regulatory organization.

Despite section 60 of the Act respecting the regulation of the financial sector, a person recognized as an exchange, a clearing house, a central securities depositary or a settlement system may include provisions governing the business or professional conduct of its members or participants and their representatives in its constituting documents, by-laws or operating rules.

1982, c. 48, s. 170; 2001, c. 38, s. 65; 2002, c. 45, s. 631; 2004, c. 37, s. 90; 2006, c. 50, s. 51; 2008, c. 24, s. 204; 2013, c. 18, s. 107; 2018, c. 23, s. 811.

170.1. (Replaced).

1990, c. 77, s. 31; 2002, c. 45, s. 631.

170.2. (Replaced).

2001, c. 38, s. 66; 2002, c. 45, s. 631.

171. The Authority may recognize an alternative trading system as an exchange or register it as a dealer.

1982, c. 48, s. 171; 2002, c. 45, s. 631; 2004, c. 37, s. 90; 2006, c. 50, s. 52; 2008, c. 24, s. 205.

171.1. Sections 70 to 71, 74 to 79 and 81 to 91 of the Act respecting the regulation of the financial sector (chapter E-6.1) apply, with the necessary modifications, to an exchange, a recognized clearing house, a central securities depositary and a recognized settlement system.

Sections 78 to 80, 87 and 89 of the Act respecting the regulation of the financial sector apply to information processors and matching service utilities.

2004, c. 37, s. 17; 2006, c. 50, s. 53; 2008, c. 24, s. 206; 2013, c. 18, s. 108; 2018, c. 23, s. 811.

171.1.1. (Replaced).

2006, c. 50, s. 54; 2008, c. 24, s. 207; 2013, c. 18, s. 109.

See section 171.2.

171.2. The Authority may, by regulation, establish the rules applicable to persons referred to in section 169 or 171, including rules concerning review or approval of their operating rules or restrictions relating to ownership of or control over such persons.

2006, c. 50, s. 54; 2008, c. 24, s. 207; 2013, c. 18, s. 109.

172. The Financial Markets Administrative Tribunal may prescribe a course of action to a person recognized under section 169 where it considers it necessary for the proper operation of the person or for public protection.

1982, c. 48, s. 172; 2002, c. 45, s. 631; O.C. 1366-2003, s. 7; 2006, c. 50, s. 55; 2008, c. 24, s. 208; 2009, c. 58, s. 99; 2016, c. 7, s. 179.

173. (Replaced).

1982, c. 48, s. 173; 2002, c. 45, s. 631.

174. (Replaced).

1982, c. 48, s. 174; 2002, c. 45, s. 631.

175. (Replaced).

1982, c. 48, s. 175; 2002, c. 45, s. 631.

176. (Replaced).

1982, c. 48, s. 176; 2002, c. 45, s. 631.

177. (Replaced).

1982, c. 48, s. 177; 2002, c. 45, s. 631.

178. (Replaced).

1982, c. 48, s. 178; 2002, c. 45, s. 631.

179. (Replaced).

1982, c. 48, s. 179; 2002, c. 45, s. 631.

180. (Replaced).

1982, c. 48, s. 180; 2002, c. 45, s. 631.

180.1. (Replaced).

1990, c. 77, s. 32; 2002, c. 45, s. 631.

180.2. (Replaced).

1990, c. 77, s. 32; 2002, c. 45, s. 631.

180.3. (Replaced).

1990, c. 77, s. 32; 2002, c. 45, s. 631.

180.4. (Replaced).

1990, c. 77, s. 32; 2002, c. 45, s. 631.

181. (Replaced).

1982, c. 48, s. 181; 2002, c. 45, s. 631.

182. (Replaced).

1982, c. 48, s. 182; 2002, c. 45, s. 631.

182.1. (Replaced).

1992, c. 35, s. 10; 2002, c. 45, s. 631.

183. (Replaced).

1982, c. 48, s. 183; 2002, c. 45, s. 631.

184. (Replaced).

1982, c. 48, s. 184; 2002, c. 45, s. 631.

185. (Replaced).

1982, c. 48, s. 185; 2002, c. 45, s. 631.

186. (Replaced).

1982, c. 48, s. 186; 2002, c. 45, s. 631.

186.1. The Authority may, in accordance with the criteria and conditions determined by regulation, designate a credit rating organization as being subject to this Act.

2009, c. 58, s. 100; 2018, c. 23, ss. 687 and 811; 2021, c. 15, s. 103.

186.2. A designated credit rating organization must comply with the requirements set by regulation, including requirements relating to

(1)  the establishment, publication and enforcement of a code of conduct applicable to its directors, officers and employees, including the minimum requirements for such a code;

(2)  a prohibition to issue or maintain a credit rating;

(3)  procedures regarding conflicts of interest between the designated credit rating organization and the person whose securities are being rated;

(4)  the keeping of the books and registers necessary for the conduct of its business;

(5)  the disclosure of information to the Authority, the public and the person whose securities are being rated; and

(6)  the appointment of a compliance officer.

2009, c. 58, s. 100.

186.2.0.1. The Authority may, in accordance with the criteria and conditions determined by regulation, designate a benchmark and the administrator of that benchmark as being subject to this Act.

In addition, it may, by regulation, prescribe requirements in respect of a person who provides information or data applied to establish a designated benchmark.

Where the Authority’s decision concerns the designation of a benchmark, section 318 applies to the administrator of that benchmark.

2021, c. 15, s. 104.

186.2.1. A designated benchmark administrator must comply with the requirements set by regulation, including requirements relating to

(1)  governance, internal controls and conflict of interest management;

(2)  the establishment, publication and enforcement of a code of conduct for contributors as well as the minimum requirements of such a code;

(3)  the integrity and reliability of the designated benchmarks that the administrator administers;

(4)  any restriction or prohibition relating to the provision and administration of a designated benchmark;

(5)  the keeping of the books and registers necessary for the conduct of its business;

(6)  the disclosure of information to the Authority, the public or the users of a designated benchmark that the administrator administers;

(7)  the methods used to establish the designated benchmarks that the administrator administers; and

(8)  the control framework for its activities, in particular operational risk management, business continuity and disaster recovery.

2018, c. 23, s. 688; 2021, c. 15, s. 105.

186.3. The Authority has the power to inspect the affairs of a designated credit rating organization and the affairs of a designated benchmark administrator to verify compliance with the law.

Sections 151.2 to 151.4 apply, with the necessary modifications, to such an inspection.

2009, c. 58, s. 100; 2018, c. 23, s. 689; 2021, c. 15, s. 105.

186.4. A designated credit rating organization, a designated benchmark administrator or another person acting on their behalf may not make any representation, written or oral, that the Authority has in any way passed upon the merits of the designated credit rating organization or the designated benchmark administrator.

2009, c. 58, s. 100; 2018, c. 23, s. 690; 2021, c. 15, s. 105.

186.5. The Authority may not regulate the content of a credit rating or the methodology used by a designated credit rating organization.

2009, c. 58, s. 100.

186.6. The Authority may impose changes in the practices and procedures of a designated credit rating organization or of a designated benchmark administrator if it considers that such a measure is necessary to protect the public.

2009, c. 58, s. 100; 2018, c. 23, s. 691; 2021, c. 15, s. 105.

TITLE VII PROHIBITIONS AND PENALTIES

CHAPTER I USE OF PRIVILEGED INFORMATION AND MISCELLANEOUS PROHIBITIONS

187. No insider of a reporting issuer having privileged information relating to securities of the issuer may trade in such securities or change an economic interest in a related financial instrument, except if he can prove that:

(1)  he is justified in believing that the information is generally known or known to the other party;

(2)  he is availing himself of an automatic dividend reinvestment plan, automatic subscription plan or any other automatic plan established by a reporting issuer, according to conditions set down in writing, before he learned the information; or

(3)  he is required to do so under a contract the terms of which are set out in writing and which was entered into before he became aware of the information.

In the case described in subparagraph 1 of the first paragraph, the insider may not trade in the securities if the other party to the transaction is the reporting issuer and the transaction is not necessary in the course of the issuer’s business.

1982, c. 48, s. 187; 1984, c. 41, s. 45; 1987, c. 40, s. 21; 1990, c. 77, s. 33; 2009, c. 25, s. 33; 2006, c. 50, s. 56; 2011, c. 26, s. 72.

188. No insider of a reporting issuer having privileged information relating to securities of the issuer may disclose that information or recommend that another party trade in the securities of the issuer, except in the following cases:

(1)  he is justified in believing that the information is generally known or known to the other party;

(2)  he must disclose the information in the course of business, having no ground to believe it will be used or disclosed contrary to section 187, 189 or 189.1 or to this section.

1982, c. 48, s. 188; 1984, c. 41, s. 46; 2009, c. 58, s. 101.

189. The prohibitions set out in sections 187 and 188 also apply to the following persons:

(1)  the officers and directors referred to in Chapter IV of Title III;

(2)  affiliates of the reporting issuer;

(3)  an investment fund manager or a person responsible for providing financial advice to an investment fund or for investing its shares or units and every person who is an insider of the investment fund manager or of that person;

(4)  every person who has acquired privileged information in the course of his relations with or of working for the reporting issuer, as a result of that person’s functions or of his engaging in business or professional activities;

(5)  every person having privileged information that, to his knowledge, was disclosed by an insider or a person referred to in this section;

(6)  every person who has acquired privileged information that he knows to be such concerning a reporting issuer;

(7)  every person who is an associate of the reporting issuer, of an insider of the latter or of a person contemplated in this section.

1982, c. 48, s. 189; 1984, c. 41, s. 47; 1999, c. 40, s. 327; 2006, c. 50, s. 57.

189.1. No person prohibited from trading in securities of a reporting issuer or from changing an economic interest in a related financial instrument by the effect of section 187 or 189 may use the privileged information in any other manner unless he is justified in believing that the information is generally known to the public. Thus, no such person may trade in options or in other derivatives within the meaning of the Derivatives Act (chapter I-14.01) concerning the securities of the issuer. Nor may the person trade in the securities of another issuer, in options or in other derivatives within the meaning of the Derivatives Act or in futures contracts concerning an index, once their market prices are likely to be influenced by the price fluctuations of the issuer’s securities.

1984, c. 41, s. 48; 2008, c. 24, s. 209; 2006, c. 50, s. 58.

190. No person informed of the investment program established by an investment fund or by an adviser who manages a portfolio may use the information for his own benefit in trading in securities of an issuer included in the program.

1982, c. 48, s. 190; 2006, c. 50, s. 59; 2009, c. 25, s. 34.

191. In addition to the adviser, the following persons are deemed to have knowledge of the investment program of an adviser who manages a portfolio, if they participate in formulating his investment decisions or his recommendations to the client for whom he manages the portfolio, or learn of them before they are implemented:

(1)  every partner of the adviser;

(2)  every legal person that is an affiliate of the adviser;

(3)  every officer or director of the adviser or of a legal person that is an affiliate of the adviser;

(4)  every member of the personnel of the adviser or of a legal person that is an affiliate of the adviser.

1982, c. 48, s. 191; 2006, c. 50, s. 60, s. 111; 2009, c. 25, s. 34.

191.1. No person with knowledge of material order information may trade in a security that is the subject of the material order information, recommend that another party do so or disclose the information to anyone, except in the following cases:

(1)  the person is justified in believing that the other party already knew of the material order information;

(2)  the person must disclose the material order information in the course of business, and there are no grounds for the person to be justified in believing the material order information will be used or disclosed contrary to this section;

(3)  the person enters into a transaction under a written automatic dividend reinvestment plan, written automatic purchase plan or other similar written automatic plan in which the person agreed to participate before obtaining knowledge of the material order information;

(4)  the person entered into a transaction as a result of a written obligation that the person entered into before obtaining knowledge of the material order information; or

(5)  the person entered into a sale or purchase as agent under the specific unsolicited instructions of the principal, or under instructions that the agent solicited from the principal before obtaining knowledge of the material order information.

For the purposes of this section, “material order information” means any information relating to an order, a projected or unexecuted order to purchase or trade a security, or even an intention to place such an order, that is likely to have a significant effect on the market price of the security.

2009, c. 58, s. 102.

192. No person may make any representation that the Authority has passed upon the merits of any security or upon the financial situation, fitness or conduct of any registrant.

1982, c. 48, s. 192; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

192.1. No person shall represent that the person is registered under this Act unless the representation is true.

No registered person shall represent that the person is registered without specifying the category of registration.

2009, c. 25, s. 35; 2011, c. 26, s. 73.

193. No dealer or adviser may multiply transactions for the account of a client solely to increase his remuneration.

1982, c. 48, s. 193.

194. No person may sell a security short without previously notifying the dealer responsible for carrying out the transaction.

1982, c. 48, s. 194.

CHAPTER II OFFENCES

195. It is an offence

(1)  to contravene a decision of the Authority or the Financial Markets Administrative Tribunal;

(2)  to fail to fulfil an undertaking with the Authority or the Financial Markets Administrative Tribunal;

(3)  to fail to furnish, within the prescribed time, information or a document required by this Act or the regulations;

(4)  to fail to appear after summons, to refuse to testify or to refuse to send or remit any document or thing required by the Authority or an agent appointed by it in the course of an investigation;

(5)  to attempt, in any manner, to hinder a representative of the Authority in the exercise of his or her functions in the course or for the purposes of an inspection or an investigation;

(6)  to provide false documents or information, or access to false documents or information, to the Authority or a member of the personnel of the Authority in the course of activities governed by this Act.

1982, c. 48, s. 195; 2002, c. 45, s. 632; 2004, c. 37, s. 90; 2008, c. 7, s. 147; 2009, c. 58, s. 103; 2011, c. 26, s. 74; 2016, c. 7, s. 179.

195.1. Every registered dealer or adviser who employs as his representative a person who is not registered with the Authority as a representative of that dealer or adviser is guilty of an offence.

1984, c. 41, s. 49; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

195.2. Influencing or attempting to influence the market price or the value of securities by means of unfair, improper or fraudulent practices is an offence.

2002, c. 45, s. 633.

196. Every person who makes a misrepresentation in any of the following is guilty of an offence:

(1)  a prospectus of any type or an offering memorandum provided for in this Act or the regulations;

(2)  the information incorporated by reference in a simplified prospectus;

(2.1)  a document prepared under a special disclosure scheme referred to in section 64;

(3)  (paragraph repealed);

(4)  (paragraph repealed);

(5)  the disclosure provided by an issuer under section 73 or 74;

(6)  (paragraph replaced);

(7)  (paragraph replaced);

(8)  a take-over bid circular or issuer bid circular.

1982, c. 48, s. 196; 2006, c. 50, s. 61; 2008, c. 24, s. 210.

197. Every person is guilty of an offence who in any manner not specified in section 196 makes a misrepresentation

(1)  in respect of a transaction in a security;

(2)  in the course of soliciting proxies or sending a circular to security holders;

(3)  in the course of a take-over bid or an issuer bid;

(4)  (subparagraph repealed);

(5)  in any document forwarded or record kept by any person pursuant to this Act.

For the purposes of this section, a misrepresentation is any misleading information on a fact that is likely to affect the decision of a reasonable investor as well as any pure and simple omission of such a fact.

1982, c. 48, s. 197; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 62; 2011, c. 26, s. 75.

198. (Repealed).

1982, c. 48, s. 198; 2001, c. 38, s. 67.

199. It is an offence, in effecting a transaction in a security,

(1)  to represent that it will be resold or repurchased, except where it carries such a right;

(2)  to represent that all or part of the purchase price will be refunded, except where the security carries such a right;

(3)  to give an undertaking relating to the future value or price of the security, except so far as that value is guaranteed on the security itself;

(4)  to declare that the security will be listed or that an application has been or will be made to that end, except in the following cases:

(a)  the Authority expressly authorized such a declaration;

(a.1)  the declaration is authorized by regulation;

(b)  the declaration appears in a preliminary or final prospectus for which the Authority has issued a receipt;

(c)  the declaration appears in an offering memorandum prescribed by this Act or the regulations;

(d)  an application to have the security listed has been made and securities of the same issuer are already listed; or

(e)  the stock exchange has already conditionally or otherwise approved the listing of the issuer’s securities or agreed to their being traded, or consented or indicated that it did not object to such a declaration.

However, a person may, in the case of a transaction for more than $50,000, undertake, by a written instrument, to resell, repurchase or refund securities.

In addition, certain distributions may be exempted from the application of subparagraphs 1 and 2 of the first paragraph with the authorization of the Authority and on the conditions that it determines.

1982, c. 48, s. 199; 2001, c. 38, s. 68; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2009, c. 58, s. 104; 2018, c. 23, s. 692.

199.1. A person who directly or indirectly engages or participates in any transaction or series of transactions in securities or any trading method relating to a transaction in securities, or in any act, practice or course of conduct is guilty of an offence if the person knows, or ought reasonably to know, that the transaction, series of transactions, trading method, act, practice or course of conduct

(1)  creates or contributes to a misleading appearance of trading activity in, or an artificial price for, a security; or

(2)  perpetrates a fraud on any person.

A person who attempts to commit an offence described in the first paragraph is also guilty of an offence.

2011, c. 26, s. 76; 2018, c. 23, s. 693.

199.2. A person who directly or indirectly engages or participates in any act, practice or course of conduct is guilty of an offence if the person knows, or ought reasonably to know, that the act, practice or course of conduct

(1)  constitutes or contributes to providing false or misleading information or data to be used in establishing a designated benchmark; or

(2)  constitutes or contributes to manipulating the computation of a designated benchmark.

A person who attempts to commit an offence described in the first paragraph is also guilty of an offence.

2018, c. 23, s. 694.

200. Every person who, not being registered as a dealer, adviser or representative, gives out information to investors which could influence their investment decisions and derives an advantage therefrom separate from his ordinary remuneration, is guilty of an offence.

1982, c. 48, s. 200; 1990, c. 77, s. 34.

201. (Repealed).

1982, c. 48, s. 201; 2006, c. 50, s. 63, s. 111; 2009, c. 25, s. 38.

CHAPTER III PENAL PROVISIONS

202. Unless otherwise specially provided, every person that contravenes a provision of this Act commits an offence and is liable to a minimum fine of $2,000 in the case of a natural person and $3,000 in the case of a legal person or double the profit realized, whichever is the greatest amount. The maximum fine is $150,000 in the case of a natural person and $200,000 in the case of a legal person, or four times the profit realized, whichever is the greater amount.

In determining the penalty, the court shall take particular account of the harm done to the investors and the advantages derived from the offence.

1982, c. 48, s. 202; 1990, c. 4, s. 897; 1992, c. 35, s. 11; 2008, c. 7, s. 148.

203. Every contravention of a regulation made under this Act is an offence subject to the same provisions as offences under this Act.

1982, c. 48, s. 203.

204. In the case of an offence under any of sections 187 to 191.1, the minimum fine is $5,000, double the profit eventually realized or one fifth of the sums invested or, in the case of trading in a related financial instrument or in derivatives, the sums allocated to the transaction or series of transactions, whichever is the greatest amount. The maximum fine is $5,000,000, four times the profit eventually realized or half the sums invested or, in the case of trading in a related financial instrument or in derivatives, the sums allocated to the transaction or series of transactions, whichever is the greatest amount.

Where the person who committed the offence traded in a security relying on privileged information, profit that may be realized means the difference between the price at which the initial trade was effected and the average market price of the security in the 10 trading days following general disclosure of the information; if, however, the position is liquidated within those 10 trading days, the average market price is replaced by the price actually obtained to the extent that that price yields a greater profit than what would be obtained at the average market price.

Where the person who committed the offence communicated privileged information, profit that may be realized means the consideration received for having communicated the information.

1982, c. 48, s. 204; 1987, c. 40, s. 22; 1990, c. 4, s. 898; 1992, c. 35, s. 12; 2002, c. 45, s. 634; 2004, c. 37, s. 18; 2008, c. 7, s. 149; 2008, c. 24, s. 211; 2009, c. 58, s. 105.

204.1. In the case of a distribution without a prospectus in contravention of section 11 or 12 or an offence under section 195.2, 196, 197, 199.1 or 199.2, the minimum fine is $5,000, double the profit realized or one fifth of the sums invested, whichever is the greatest amount. The maximum fine is $5,000,000, four times the profit realized or half the sums invested, whichever is the greatest amount.

2008, c. 7, s. 150; 2011, c. 26, s. 77; 2018, c. 23, s. 695.

205. Every officer, director or employee of the principal offender, including a person remunerated on commission, who authorizes or permits an offence under this Act is liable to the same penalties as the principal offender.

1982, c. 48, s. 205; 2006, c. 50, s. 64, s. 111.

206. (Repealed).

1982, c. 48, s. 206; 2001, c. 38, s. 69.

207. Every conspiracy to commit an offence under this Act is an offence punishable by the penalties provided in section 202, 204 or 204.1, according to the offence.

1982, c. 48, s. 207; 2009, c. 58, s. 106.

208. Every person who, by act or omission, aids a person in the commission of an offence is guilty of the offence as if he had committed it himself. He is liable to the penalties provided in section 202, 204 or 204.1 according to the nature of the offence.

The same rule applies to a person who, by incitation, counsel or order induces a person to commit an offence.

1982, c. 48, s. 208; 1987, c. 40, s. 23; 2009, c. 58, s. 107.

208.1. Every person who makes a distribution of securities in contravention of section 11 or 12 or who contravenes any of sections 187 to 191.1, 195.2, 196 and 197, the first paragraph of sections 199.1 and 199.2 or any of sections 205, 207 and 208 is liable, regardless of the fine provided for in the applicable penal provision, to imprisonment not exceeding five years less one day, notwithstanding articles 231 and 348 of the Code of Penal Procedure (chapter C-25.1).

2002, c. 45, s. 635; 2002, c. 70, s. 176; 2008, c. 7, s. 151; 2009, c. 58, s. 108; 2018, c. 23, s. 696.

209. (Repealed).

1982, c. 48, s. 209; 1984, c. 41, s. 50; 1990, c. 4, s. 899.

210. Penal proceedings for an offence under a provision of this Act may be instituted by the Authority.

1982, c. 48, s. 210; 1992, c. 61, s. 622; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

210.1. The fine imposed by a court belongs to the Authority where the Authority has taken charge of the prosecution.

2001, c. 38, s. 70; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

211. Penal proceedings for an offence under a provision of sections 11, 12, 25 to 27, 29, 64, 67, 73, 75 to 78, 80 to 82.1, 89.3, 96 to 98, 102 to 103.1, 108, 109.2 to 109.5, 112, 113, 115, 148, 149, 151.4, 158 to 168.1.4, 169, 187 to 191.1, 192 to 197, 199 to 203 and 207 shall be prescribed by five years from the date on which the investigation record relating to the offence was opened.

The certificate of the secretary of the Authority indicating the date on which the investigation record was opened constitutes, failing any evidence to the contrary, conclusive proof of such fact.

1982, c. 48, s. 211; 1990, c. 77, s. 35; 1992, c. 61, s. 623; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2008, c. 7, s. 152; 2009, c. 58, s. 109; 2018, c. 23, s. 697.

212. The Authority may recover its costs for an investigation from any person found guilty of an offence under this Act or under the securities legislation of another legislative authority.

The Authority shall prepare a statement of costs and present it to a judge of the Court of Québec after giving the interested parties five days’ advance notice of the date of presentation.

The judge shall determine the costs, and his decision may be appealed with leave of a judge of the Court of Appeal.

1982, c. 48, s. 212; 1988, c. 21, s. 66; 2002, c. 45, s. 696; 2004, c. 37, s. 90; I.N. 2016-01-01 (NCCP).

213. A judge of the Court of Québec may, upon satisfactory proof of the authenticity of the signature thereon, endorse a warrant of arrest issued by a judge of another province or a territory against any person on a charge of contravening the securities legislation of that province or territory.

The warrant so endorsed is sufficient authority to the bearer or any peace officer of Québec to execute it and take the person arrested to the place indicated in the warrant.

1982, c. 48, s. 213; 1988, c. 21, s. 144; 2004, c. 37, s. 19.

TITLE VIII CIVIL ACTIONS

213.1. This Title sets rules applicable to certain actions for rescission, for revision of the price or for damages. It also sets rules applicable when privileged information is used in contravention of certain provisions concerning insiders, and rules applicable when this Act or a regulation made under this Act is contravened in connection with a take-over bid or issuer bid.

More particularly, Chapters I and II of this Title establish rules relating to actions for damages resulting from the subscription, acquisition or disposition of securities to which this Title applies. They do not prevent an action for damages from being brought under ordinary civil liability rules.

2007, c. 15, s. 3.

CHAPTER I TRANSACTIONS EFFECTED WITHOUT A PROSPECTUS, CIRCULAR OR OTHER DOCUMENT

2016, c. 7, s. 158.

214. Every person who has subscribed for or acquired securities in a distribution of securities effected without the prospectus required under Title II may apply to have the transaction rescinded or the price revised, at his option, without prejudice to his claim for damages.

The plaintiff may claim damages from the issuer or the holder, as the case may be, whose securities were distributed without a prospectus from the promoter of the venture, from their officers or directors, or from the dealer responsible for the distribution.

However, if the plaintiff did not receive the prospectus he was entitled to receive, he has no claim in damages except against the dealer or the person prescribed who is required to send the prospectus to him pursuant to section 29.

For the purposes of this section, a reference to a prospectus includes a document, prescribed by regulation, standing in lieu of a prospectus.

1982, c. 48, s. 214; 1990, c. 77, s. 36; 2006, c. 50, s. 66; 2011, c. 26, s. 78.

214.1. The holder of mutual fund securities traded on an exchange or an alternative trading system who did not receive the document referred to in section 109.7 may only claim damages from a dealer who is required to send the document to the holder in accordance with that section.

2016, c. 7, s. 159.

215. Every person who has disposed of securities in response to a take-over bid or issuer bid effected without a take-over bid or issuer bid circular may apply to have the disposal rescinded or the price revised, at his option. In addition, the plaintiff may claim damages from the offeror, its officers and its directors.

If a holder did not receive the take-over bid or issuer bid circular he was entitled to receive, he may claim damages from the offeror, its officers and its directors.

1982, c. 48, s. 215; 2006, c. 50, s. 67; 2007, c. 15, s. 4; 2006, c. 50, s. 67.

215.1. The plaintiff in an action for damages is not required to prove that the plaintiff subscribed for, acquired or disposed of securities because the distribution, take-over bid or issuer bid was made without a prospectus or without a circular, or because the plaintiff did not receive a prospectus or a circular that the plaintiff was entitled to receive.

2007, c. 15, s. 5.

216. The defendant in an action for damages under section 214 or 215 is liable for damages unless it is proved that the absence of a prospectus or take-over bid or issuer bid circular was not imputable to any act on his part.

1982, c. 48, s. 216; 1999, c. 40, s. 327; 2006, c. 50, s. 68.

CHAPTER II MISREPRESENTATION

2007, c. 15, s. 6.

DIVISION I PRIMARY MARKET AND TAKE-OVER OR ISSUER BIDS

2007, c. 15, s. 9.

217. A person who has subscribed for or acquired securities in a distribution effected with a prospectus containing a misrepresentation may apply to have the contract rescinded or the price revised, without prejudice to his claim for damages.

The defendant may defeat the application only if it is proved that the plaintiff knew, at the time of the transaction, of the alleged misrepresentation.

1982, c. 48, s. 217.

218. The plaintiff may claim damages from the issuer or the holder, as the case may be, whose securities were distributed, from its officers or directors, the dealer under contract to the issuer or holder whose securities were distributed and any person who is required to sign an attestation in the prospectus, in accordance with the conditions prescribed by regulation.

1982, c. 48, s. 218; 2006, c. 50, s. 69, s. 111; 2008, c. 7, s. 153.

219. The plaintiff may also claim damages from the expert whose opinion, containing a misrepresentation, appeared, with his consent, in the prospectus.

1982, c. 48, s. 219.

220. The defendant in an action provided for in sections 218 and 219 is liable for damages unless it is proved that

(1)  he acted with prudence and diligence, except in an action brought against the issuer or the holder whose securities were distributed, or that

(2)  the plaintiff knew, at the time of the transaction, of the alleged misrepresentation.

1982, c. 48, s. 220; 1999, c. 40, s. 327.

221. Rights of action established under sections 217 to 219 may also be exercised if a misrepresentation is contained in

(1)  the information incorporated by reference in the simplified prospectus;

(2)  the offering memorandum prescribed by regulation;

(3)  any other document authorized by the Authority for use in lieu of a prospectus.

1982, c. 48, s. 221; 1984, c. 41, s. 52; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 70.

222. A person who has disposed of securities in response to a take-over bid or issuer bid effected with a circular containing a misrepresentation may apply to have the disposal rescinded or the price revised.

The defendant may defeat the application only if it is proved that, at the time of the disposal, the plaintiff knew of the alleged misrepresentation.

1982, c. 48, s. 222; 1984, c. 41, s. 53; 2007, c. 15, s. 7; 2006, c. 50, s. 71.

223. The plaintiff may also claim damages from the offeror, its officers and its directors, and from the expert whose opinions, containing a misrepresentation, appeared, with his consent, in the take-over bid or issuer bid circular, and any person who is required to sign an attestation in the take-over bid circular, in accordance with the conditions prescribed by regulation.

1982, c. 48, s. 223; 2006, c. 50, s. 72; 2008, c. 7, s. 154.

224. The defendant in an action provided for in section 223 is liable for damages unless it is proved that

(1)  he acted with prudence and diligence, except in the case of the offeror, or that

(2)  the plaintiff knew, at the time of the disposal, of the alleged misrepresentation.

1982, c. 48, s. 224; 1999, c. 40, s. 327; 2007, c. 15, s. 8.

225. Any misrepresentation contained in any of the documents prepared for a take-over bid by the board of directors, a director or an officer of the offeree issuer gives rise to a right of action in damages, in favour of all the holders of securities of the offeree issuer at the time of the bid, against the signatory or signatories of the document.

The defendant is liable for damages, subject to the grounds for defence set forth in section 224.

1982, c. 48, s. 225; 1984, c. 41, s. 54; 1999, c. 40, s. 327; 2006, c. 50, s. 73.

225.0.1. A defendant may defeat an action based on a misrepresentation in forward-looking information by proving that

(1)  the document containing the forward-looking information contained, proximate to that information,

(a)  reasonable cautionary language identifying the forward-looking information as such, and identifying material factors that could cause actual results to differ materially from a conclusion, forecast or projection in the forward-looking information; and

(b)  a statement of the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection; and

(2)  the defendant had a reasonable basis for drawing the conclusions or making the forecasts or projections set out in the forward-looking information.

This section does not apply to forward-looking information in a financial statement required to be filed under this Act or the regulations or in a document released in connection with an initial public offering.

2007, c. 15, s. 10.

225.0.2. The plaintiff is not required to prove that the plaintiff relied on the document containing a misrepresentation when the plaintiff subscribed for, acquired or disposed of a security.

2007, c. 15, s. 10.

225.1. (Repealed).

1987, c. 40, s. 24; 2006, c. 50, s. 74.

DIVISION II SECONDARY MARKET

2007, c. 15, s. 11.

§ 1 . — Scope and interpretation

2007, c. 15, s. 11.

225.2. This division applies to any person who acquires or disposes of a security of a reporting issuer or of any issuer closely connected to Québec whose securities are publicly traded.

However, this division does not apply to a person that subscribes for or acquires a security during the period of a distribution of securities made with a prospectus or, unless otherwise provided by regulation, under a prospectus exemption granted by this Act, a regulation made under this Act or a decision of the Authority; nor does it apply to a person that acquires or disposes of a security in connection with or pursuant to a take-over bid or issuer bid, unless otherwise provided by regulation, or to a person that makes any other transaction determined by regulation.

2007, c. 15, s. 11.

225.3. In this division, unless the context indicates otherwise,

“core document” means a prospectus, a take-over bid circular, an issuer bid circular, a directors’ circular, a notice of change or variation in respect of a take-over bid circular, issuer bid circular or directors’ circular, a rights offering circular, management’s discussion and analysis, an annual information form, a proxy solicitation circular, the issuer’s annual and interim financial statements and any other document determined by regulation, and a material change report, but only where used in relation to the issuer or the investment fund manager and their officers;

“document” means any writing that is filed or required to be filed with the Authority, with a government or an agency of a government under applicable securities or corporate law, or with a stock exchange or quotation and trade reporting system under its by-laws, or the content of which would reasonably be expected to affect the market price or value of a security of the issuer;

“expert” means a person whose profession gives authority to a statement made in a professional capacity by the person, including an accountant, actuary, appraiser, auditor, engineer, financial analyst, geologist, advocate or notary, but not including an entity that is a designated credit rating organization defined by regulation;

“influential person” means, in respect of an issuer, a control person, a promoter, an insider who is not a director or officer of the issuer, or an investment fund manager, if the issuer is an investment fund;

“issuer’s security” means a security of an issuer and includes a security the market price or value of which, or payment obligations under which, are derived from or based on a security of the issuer and which is created by a person acting on behalf of the issuer or is guaranteed by the issuer;

“management’s discussion and analysis” means the section of an annual information form, annual report or other document that contains management’s discussion and analysis of the financial situation and operating results of an issuer as required under this Act or the regulations;

“public oral statement” means an oral statement made in circumstances in which a reasonable person would believe that information contained in the statement will become generally disclosed; and

“release” means, with respect to information or a document, to file with a stock exchange, the Authority or an extra-provincial securities commission within the meaning of section 305.1, or to otherwise make available to the public.

2007, c. 15, s. 11; 2011, c. 18, s. 81.

§ 2 . — Actions for damages and burden of proof

2007, c. 15, s. 11.

I.  — Prior authorization and other general conditions

2007, c. 15, s. 11.

225.4. No action for damages may be brought under this division without the prior authorization of the court.

The request for authorization must state the facts giving rise to the action. It must be filed together with the projected statement of claim and be served by bailiff to the parties concerned, with a notice of at least 10 days of the date of presentation.

The court grants authorization if it deems that the action is in good faith and there is a reasonable possibility that it will be resolved in favour of the plaintiff.

The request for authorization and, if applicable, the application for authorization to institute a class action required under article 574 of the Code of Civil Procedure (chapter C-25.01) must be made to the court concomitantly.

2007, c. 15, s. 11; I.N. 2016-01-01 (NCCP); 2018, c. 23, s. 699.

225.5. On filing the request for authorization with the court, the plaintiff must send a copy to the Authority.

If authorization is granted by the court, the plaintiff must promptly issue a press release disclosing that fact. Within seven days after authorization is granted, the plaintiff must send a written notice to the Authority, together with a copy of the press release. In addition, on filing the statement of claim with the court, the plaintiff must send a copy to the Authority.

2007, c. 15, s. 11.

225.6. Any interested party may request that the court declare an authorization perempted if the plaintiff does not commence the action within three months after authorization is granted.

Such a request must be served on the parties together with a notice of at least 30 days of the date of presentation.

2007, c. 15, s. 11.

225.7. An action may not be abandoned or settled except on the terms set by the court, including terms as to legal costs.

When setting the terms, the court considers whether there are any other actions outstanding under this division or under comparable provisions of extra-provincial securities laws within the meaning of section 305.1 in respect of the same misrepresentation or failure to make timely disclosure.

2007, c. 15, s. 11; I.N. 2016-01-01 (NCCP).

II.  — Persons liable to action

2007, c. 15, s. 11.

225.8. A person that acquires or disposes of an issuer’s security during the period between the time when the issuer or a mandatary or other representative of the issuer released a document containing a misrepresentation and the time when the misrepresentation was publicly corrected may bring an action against

(1)  the issuer, each director of the issuer at the time the document was released, and each officer of the issuer who authorized, permitted or acquiesced in the release of the document;

(2)  each influential person, and each director and officer of an influential person, who knowingly influenced the issuer or a mandatary or other representative of the issuer to release the document or a director or officer of the issuer to authorize, permit or acquiesce in the release of the document; and

(3)  each expert whose report, statement or opinion containing the misrepresentation was included, summarized or quoted from in the document and, if the document was released by a person other than the expert, who consented in writing to the use of the report, statement or opinion in the document.

2007, c. 15, s. 11.

225.9. A person that acquires or disposes of an issuer’s security during the period between the time when a mandatary or other representative of the issuer made a public oral statement relating to the issuer’s business or affairs and containing a misrepresentation and the time when the misrepresentation was publicly corrected may bring an action against

(1)  the issuer and each director and officer of the issuer who authorized, permitted or acquiesced in the making of the public oral statement;

(2)  the person who made the public oral statement;

(3)  each influential person, and each director and officer of an influential person, who knowingly influenced the person who made the public oral statement to make the public oral statement or a director or officer of the issuer to authorize, permit or acquiesce in the making of the public oral statement; and

(4)  each expert whose report, statement or opinion containing the misrepresentation was included, summarized or quoted from in the public oral statement and, if the public oral statement was made by a person other than the expert, who consented in writing to the use of the report, statement or opinion in the public oral statement.

2007, c. 15, s. 11.

225.10. A person that acquires or disposes of an issuer’s security during the period between the time when an influential person or a mandatary or other representative of the influential person released a document or made a public oral statement relating to the issuer and containing a misrepresentation and the time when the misrepresentation was publicly corrected may bring an action against

(1)  the issuer, if a director or officer of the issuer or the investment fund manager authorized, permitted or acquiesced in the release of the document or the making of the public oral statement;

(2)  the person who made the public oral statement;

(3)  each director and officer of the issuer who authorized, permitted or acquiesced in the release of the document or the making of the public oral statement;

(4)  the influential person and each director and officer of the influential person who authorized, permitted or acquiesced in the release of the document or the making of the public oral statement; and

(5)  each expert whose report, statement or opinion containing the misrepresentation was included, summarized or quoted from in the document or public oral statement and, if the document was released or the public oral statement was made by a person other than the expert, who consented in writing to the use of the report, statement or opinion in the document or public oral statement.

2007, c. 15, s. 11.

225.11. A person that acquires or disposes of an issuer’s security during the period between the time when the issuer failed to make timely disclosure of a material change and the time when the material change was disclosed in the manner required under this Act or the regulations may bring an action against

(1)  the issuer and each director and officer of the issuer who authorized, permitted or acquiesced in the failure to make timely disclosure; and

(2)  each influential person, and each director and officer of an influential person, who knowingly influenced the issuer or a mandatary or other representative of the issuer in the failure to make timely disclosure or a director or officer of the issuer to authorize, permit or acquiesce in the failure to make timely disclosure.

2007, c. 15, s. 11.

III.  — Plaintiff’s burden of proof

2007, c. 15, s. 11.

225.12. The plaintiff is not required to prove that the plaintiff relied on the document or public oral statement containing a misrepresentation or on the issuer having complied with its timely disclosure obligations when the plaintiff acquired or disposed of the issuer’s security.

2007, c. 15, s. 11.

225.13. For the purposes of sections 225.8 to 225.10, unless the defendant is an expert or the misrepresentation was contained in a core document, the plaintiff must prove that the defendant

(1)  knew, at the time that the document was released or the public oral statement was made, that the document or public oral statement contained a misrepresentation or deliberately avoided acquiring such knowledge at or before that time; or

(2)  was guilty of a gross fault in connection with the release of the document or the making of the public oral statement.

2007, c. 15, s. 11.

225.14. For the purposes of section 225.11, unless the defendant is the issuer, the investment fund manager or an officer of the issuer or the investment fund manager, the plaintiff must prove that the defendant

(1)  knew, at the time that a material change report should have been filed, of the change and that the change was a material change, or deliberately avoided acquiring such knowledge at or before that time; or

(2)  was guilty of a gross fault in connection with the failure to make timely disclosure.

2007, c. 15, s. 11.

225.15. In determining whether a gross fault was committed, the court must consider all relevant circumstances, including

(1)  the nature of the issuer;

(2)  the knowledge, experience and function of the defendant;

(3)  the office held, if the defendant was an officer;

(4)  the presence or absence of another relationship with the issuer, if the defendant was a director;

(5)  the existence and the nature of any system designed to ensure that the issuer meets its continuous disclosure obligations, and the reasonableness of reliance by the defendant on that system;

(6)  the reasonableness of reliance by the defendant on the issuer’s officers and employees and on others whose duties would in the ordinary course have given them knowledge of the relevant facts;

(7)  the period within which disclosure was required to be made under this Act or the regulations;

(8)  in respect of a report, statement or opinion of an expert, any standards, rules or practices applicable to the expert;

(9)  the extent to which the defendant knew, or should reasonably have known, the content and medium of dissemination of the document or public oral statement;

(10)  the role and responsibility of the defendant in the preparation and release of the document or the making of the public oral statement containing the misrepresentation or in the ascertaining of the facts contained in that document or public oral statement; and

(11)  the role and responsibility of the defendant in the decision not to disclose the material change.

2007, c. 15, s. 11.

225.16. The court seized of the action may decide that multiple misrepresentations having common subject matter or content may be treated as a single misrepresentation or that multiple instances of failure to make timely disclosure concerning common subject matter may be treated as a single failure to make timely disclosure.

2007, c. 15, s. 11.

IV.  — Defendant’s burden of proof

2007, c. 15, s. 11.

225.17. A defendant may defeat an action by proving that, at the time of the transaction, the plaintiff knew that the document or public oral statement contained a misrepresentation or was aware of the material change that should have been disclosed.

An action may also be defeated by proving that the defendant conducted or caused to be conducted a reasonable investigation and had no reasonable grounds to believe that the document or public oral statement would contain a misrepresentation or that the failure to make timely disclosure would occur.

2007, c. 15, s. 11.

225.18. In determining whether an investigation was reasonable under the second paragraph of section 225.17, the court must consider all relevant circumstances, including those listed in paragraphs 1 to 11 of section 225.15.

2007, c. 15, s. 11.

225.19. A defendant may defeat an action by proving that

(1)  the misrepresentation was also contained in a document filed by or on behalf of a third person, other than the issuer, with the Authority or an extra-provincial securities commission within the meaning of section 305.1 or a stock exchange, and was not corrected in another document filed by or on behalf of that third person with the Authority, commission or stock exchange before the issuer or the mandatary or other representative of the issuer released the document or made the public oral statement;

(2)  the document or public oral statement contained a reference identifying the document that was the source of the misrepresentation; and

(3)  when the document was released or the public oral statement was made, the defendant did not know and had no reasonable grounds to believe that the document or public oral statement contained a misrepresentation.

2007, c. 15, s. 11.

225.20. A defendant, other than the issuer, may defeat an action by proving that

(1)  the document was released, the public oral statement was made or the failure to make timely disclosure occurred without the defendant’s knowledge or consent; and

(2)  after the defendant became aware of the misrepresentation or the failure to make timely disclosure but before the misrepresentation was corrected or the material change was disclosed in the manner required under this Act or the regulations,

(a)  the defendant promptly notified the board of directors of the issuer or other persons acting in a similar capacity of the misrepresentation or the failure to make timely disclosure; and

(b)  if no correction of the misrepresentation or no subsequent disclosure of the material change in the manner required under this Act or the regulations was made by the issuer within two working days after the notification under subparagraph a, the defendant, unless prohibited by law or by professional confidentiality rules, promptly notified the Authority, in wriating, of the misrepresentation in the document or public oral statement or failure to make timely disclosure.

2007, c. 15, s. 11; I.N. 2016-01-01 (NCCP).

225.21. For the purposes of sections 225.9 and 225.10, a defendant other than the person who made the public oral statement may defeat an action by proving that the defendant did not become, or should not reasonably have become, aware of the misrepresentation before the plaintiff acquired or disposed of the issuer’s securities and by proving that the person who made the public oral statement had no authority other than apparent authority to do so.

2007, c. 15, s. 11.

225.22. A defendant may defeat an action for a misrepresentation in forward-looking information in a document or a public oral statement by proving that

(1)  the document or public oral statement containing the forward-looking information contained, proximate to that information,

(a)  reasonable cautionary language clearly identifying the forward-looking information as such, and identifying material factors that could cause actual results to differ materially from a conclusion, forecast or projection in the forward-looking information; and

(b)  a statement of the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection; and

(2)  the defendant had a reasonable basis for drawing the conclusions or making the forecasts or projections set out in the forward-looking information.

This section does not apply to forward-looking information in a financial statement required to be filed under this Act or the regulations or in a document released in connection with an initial public offering.

2007, c. 15, s. 11.

225.23. A defendant is deemed to have satisfied the requirements of subparagraph 1 of the first paragraph of section 225.22 with respect to a public oral statement containing forward-looking information if the person who made the public oral statement

(1)  made a cautionary statement that the public oral statement contains forward-looking information;

(2)  stated that the actual results could differ materially from a conclusion, forecast or projection in the forward-looking information and that certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information; and

(3)  stated that additional information about the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information and about the material factors or assumptions applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information is contained in a readily-available document, and has identified that document.

For the purposes of subparagraph 3 of the first paragraph, a document filed with the Authority, or otherwise generally disclosed, is deemed to be readily available.

2007, c. 15, s. 11.

225.24. A defendant, other than an expert, may defeat an action for a misrepresentation in a document or public oral statement that includes, summarizes or quotes from a report, statement or opinion made by the expert, with the expert’s written consent to the use of the report, statement or opinion, if the consent had not been withdrawn in writing before the document was released or the public oral statement was made, by proving that

(1)  the defendant did not know and had no reasonable grounds to believe that there was a misrepresentation in the report, statement or opinion of the expert that was included, summarized or quoted from in the document or public oral statement; and

(2)  that the report, statement or opinion of the expert was fairly represented in the document or public oral statement.

2007, c. 15, s. 11.

225.25. An expert who is the defendant in an action may defeat the action by proving that the written consent previously provided to the use of a report, statement or opinion made by the expert was withdrawn in writing before the document was released or the public oral statement was made.

2007, c. 15, s. 11.

225.26. A defendant may defeat an action for a misrepresentation in a document other than a document that is required to be filed with the Authority by proving that, at the time that the document was released, the defendant did not know and had no reasonable grounds to believe that the document would be released.

2007, c. 15, s. 11.

225.27. A defendant may defeat an action under section 225.11 by proving that

(1)  the issuer, in accordance with this Act or the regulations, filed a material change report with the Authority without making the report public and the issuer had a reasonable basis to file the report on a confidential basis;

(2)  if the change remains material, the issuer promptly made the material change public when the basis for confidentiality ceased to exist;

(3)  the defendant or issuer did not release a document or make a public oral statement that, due to the undisclosed material change report, contained a misrepresentation; and

(4)  if the material change became publicly known in a manner other than the manner required under this Act or the regulations, the issuer promptly disclosed the material change in accordance with this Act or the regulations.

2007, c. 15, s. 11.

§ 3 . — Assessment of damages and apportionment of liability

2007, c. 15, s. 11.

225.28. Damages are assessed as follows in favour of a plaintiff that acquired an issuer’s securities:

(1)  in respect of securities that the plaintiff has not disposed of, assessed damages are to be equal to the number of securities acquired and not disposed of, multiplied by the difference between the average price paid per security (including commissions) and, if the issuer’s securities trade on a published market, the trading price of the issuer’s securities on the principal market for the 10 trading days following the public correction of the misrepresentation or the disclosure of the material change in the manner required under this Act or the regulations or, if there is no organized market, the amount that the court considers just;

(2)  in respect of securities that the plaintiff subsequently disposed of on or before the last of the 10 trading days referred to in paragraph 1, assessed damages are to be equal to the difference between the average price paid for those securities (including commissions) and the price received on the disposition of those securities (without deducting commissions), calculated taking into account the result of hedging or other risk limitation transactions; and

(3)  in respect of securities that the plaintiff subsequently disposed of after the last of the 10 trading days referred to in paragraph 1, assessed damages are to be equal to the lesser of

(a)  the number of those securities, multiplied by the difference determined under paragraph 1; and

(b)  the difference determined under paragraph 2.

2007, c. 15, s. 11; 2008, c. 7, s. 155.

225.29. Damages are assessed as follows in favour of a plaintiff that disposed of an issuer’s securities:

(1)  in respect of securities that the plaintiff has not subsequently repurchased, assessed damages are to be equal to the number of securities disposed of and not repurchased, multiplied, if the issuer’s securities trade on a published market, by the difference between the trading price of the issuer’s securities on the principal market for the 10 trading days following the public correction of the misrepresentation or the disclosure of the material change in the manner required under this Act or the regulations, or, if there is no organized market, the amount that the court considers just, and the average price received per security on the disposition of those securities (deducting commissions paid determined on a per security basis);

(2)  in respect of securities that the plaintiff subsequently repurchased on or before the last of the 10 trading days referred to in paragraph 1, assessed damages are to be equal to the difference between the price paid for those securities (excluding commissions) and the average price received on the disposition of those securities (deducting commissions), calculated taking into account the result of hedging or other risk limitation transactions; and

(3)  in respect of securities that the plaintiff repurchased after the last of the 10 trading days referred to in paragraph 1, assessed damages are to be equal to the lesser of

(a)  the number of those securities, multiplied by the difference determined under paragraph 1; and

(b)  the difference determined under paragraph 2.

2007, c. 15, s. 11; 2008, c. 7, s. 155.

225.30. Assessed damages are not to include any amount that the defendant proves is attributable to a change in the market price of securities that is unrelated to the misrepresentation or the failure to make timely disclosure.

2007, c. 15, s. 11.

225.31. The court determines each defendant’s responsibility for the damages assessed and orders each defendant to pay that portion of those damages that corresponds to the defendant’s responsibility.

However, if the court determines that a particular defendant, other than the issuer, authorized, permitted or acquiesced in the release of the document or making of the public oral statement containing the misrepresentation, or the failure to make timely disclosure, while knowing it to be a misrepresentation or a failure to make timely disclosure, it may order that defendant to pay the whole amount of the damages.

If two or more defendants are so determined to be responsible for all the damages assessed, they are solidarily liable for the whole amount of the damages.

2007, c. 15, s. 11.

225.32. A defendant who is a director or officer of an influential person is not liable in that capacity if the defendant is liable as a director or officer of the issuer.

2007, c. 15, s. 11.

225.33. Unless the plaintiff proves that the defendant, other than the issuer, authorized, permitted or acquiesced in the release of the document or making of the public oral statement containing the misrepresentation, or the failure to make timely disclosure, while knowing it to be a misrepresentation or a failure to make timely disclosure, the damages payable are the lesser of

(1)  the amount determined under section 225.28 or 225.29; and

(2)  the maximum amount determined under the second paragraph less any damages the defendant has been ordered to pay by a judgment that has become res judicata in any other actions brought against the defendant under this division or comparable provisions of extra-provincial securities laws within the meaning of section 305.1 in respect of the same misrepresentation or failure to make timely disclosure, and less any amount paid in settlement of such actions.

For the purposes of subparagraph 2 of the first paragraph, the maximum amount is,

(1)  in the case of the issuer or an influential person that is not a natural person, the greater of 5% of its market capitalization and $1,000,000;

(2)  in the case of a natural person other than an expert, the greater of 50% of the aggregate of that person’s compensation from the issuer and its affiliates and $25,000 or, if the person is a director or officer of an influential person, the greater of 50% of the aggregate of that person’s compensation from the influential person and its affiliates and $25,000; and

(3)  in the case of an expert, the greater of the revenue that the expert and the affiliates of the expert earned from the issuer and its affiliates during the 12-month period preceding the misrepresentation and $1,000,000.

For the purposes of subparagraph 2 of the second paragraph, “compensation” means compensation received during the 12-month period immediately preceding the day on which the misrepresentation was made or on which the failure to make timely disclosure first occurred, together with the market value of all deferred compensation including, without limitation, options, pension benefits and stock appreciation rights, granted during the same period, valued as of the date that such compensation is awarded.

2007, c. 15, s. 11.

CHAPTER III USE OF PRIVILEGED INFORMATION

226. Every person who carries out a transaction contrary to section 187, 189, 189.1 or 190 is responsible for any injury suffered by the other party to the transaction.

1982, c. 48, s. 226; 1984, c. 41, s. 55; 1999, c. 40, s. 327.

227. Every person who discloses privileged information in contravention of section 188 or 189 is responsible for any injury caused to a third person as a result of a transaction effected with the person who used the information so disclosed.

1982, c. 48, s. 227; 1999, c. 40, s. 327.

228. Every person using privileged information contrary to section 187, 189, 189.1 or 190 is also accountable for the benefit accruing to him from the prohibited transactions, after repairing the harm caused, to the following persons:

(1)  the issuer of the securities concerned, in the case of an offence under section 187, 189 or 189.1;

(2)  the investment fund or the client for whom the portfolio is managed, in the case of an offence under section 190.

1982, c. 48, s. 228; 1984, c. 41, s. 56; 2006, c. 50, s. 75.

229. With the authorization of the court, obtained on an application served on the issuer or the investment fund, the rights of action for recovery under section 228 may be exercised, in the name of and for the account of the persons entitled to the action, by a person who was at the time of the prohibited transaction or is at the time of the application a holder of outstanding securities of the issuer or the investment fund.

1982, c. 48, s. 229; 2004, c. 37, s. 20; 2006, c. 50, s. 76; I.N. 2016-01-01 (NCCP).

230. Every holder who satisfies the conditions set forth in section 229 may also intervene in an action instituted under section 228 or 229.

1982, c. 48, s. 230.

231. To obtain the authorization provided for in section 229, it must be established that the officers and the directors of the issuer or the investment fund have failed to institute the action, or have failed to prosecute it diligently.

1982, c. 48, s. 231; 2006, c. 50, s. 77, s. 111.

232. The court may make any necessary order to facilitate the timely exercise of a holder’s right to institute or intervene in an action. In particular, it may charge the holder’s costs to the issuer.

1982, c. 48, s. 232.

233. The Authority has an interest to bring an action under section 229 or 230 in the same manner as a holder.

1982, c. 48, s. 233; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

CHAPTER III.1 IRREGULAR TAKE-OVER BIDS OR ISSUER BIDS

1984, c. 41, s. 58.

233.1. The offeree issuer, the offeror, their officers, their directors and persons holding their securities at the time of the transaction or action may move that the court make any order of such a nature as to rectify the consequences of a contravention of the Act or the regulations regarding a take-over bid or issuer bid. A copy of the application requesting the order is sent to the Authority.

They may in particular move that the court cancel a transaction or an issue, order a party to dispose of securities purchased during a bid, prohibit a holder from exercising voting rights attached to securities purchased during a bid, or order that compensation be paid to an interested person for any damage resulting from a contravention of the Act or the regulations regarding a take-over bid or issuer bid.

1984, c. 41, s. 58; 2006, c. 50, s. 78; I.N. 2016-01-01 (NCCP).

233.2. On application by an interested person, the Financial Markets Administrative Tribunal may, if it considers that a person has not complied or is not complying with this Act or the regulations in the context of a take-over bid or an issuer bid, make an order

(1)  restraining the distribution of any document used or issued;

(2)  requiring an amendment to any document used or issued and requiring the distribution of any amended or corrected document;

(3)  directing a person to comply with this Act or the regulations, restraining a person from contravening this Act or the regulations or directing the directors and officers of the person to cause the person to comply with or to cease contravening this Act or the regulations.

2006, c. 50, s. 79; 2009, c. 58, s. 110; 2016, c. 7, s. 179.

CHAPTER IV PRESCRIPTION AND MISCELLANEOUS PROVISIONS

1987, c. 40, s. 25.

234. Any action for rescission or for revision of the price under this title is prescribed by the lapse of three years from the date of the transaction.

1982, c. 48, s. 234; 2002, c. 45, s. 636.

235. Any action for damages under this title is prescribed by the lapse of three years from knowledge of the facts giving rise to the action, except on proof that tardy knowledge is imputable to the negligence of the plaintiff.

However, in the case of an action under Division II of Chapter II, the plaintiff is deemed to have knowledge of the facts as of the date on which the document containing the misrepresentation was first released, the oral public statement containing the misrepresentation was made or the material change should have been disclosed.

The prescription provided for by this section is suspended by the filing of a request for authorization with the court under section 225.4; moreover, the suspension of prescription provided for by article 2908 of the Civil Code is effective only as of the filing of that request. The suspension ceases, as the case may be,

(1)  when the court has rendered its decision on the request for authorization and the decision can no longer be appealed;

(2)  when the plaintiff has discontinued the action; or

(3)  at the time provided for in article 2908 of the Civil Code, with respect to a member of the group that is the object of a class action who is excluded from the class action by a judgment subsequent to that authorizing the action under section 225.4.

1982, c. 48, s. 235; 2002, c. 45, s. 637; 2007, c. 15, s. 12; 2018, c. 23, s. 700.

236. However, the prescriptive periods under section 235 are subordinate to the following limitations:

(1)  five years from the transaction, in the case of actions for damages provided for in sections 214, 215, 226, 227 and 228;

(2)  five years from the filing of the information document with the Authority, in the case of actions under sections 218, 219, 221, 223 and 225;

(3)  six months from the publication of the press release announcing that authorization has been granted by the court to bring an action under Division II of Chapter II or comparable provisions of extra-provincial securities laws within the meaning of section 305.1 regarding the same misrepresentation or failure to make timely disclosure, in the case of actions under that division.

1982, c. 48, s. 236; 1990, c. 77, s. 37; 2002, c. 45, s. 638; 2004, c. 37, s. 90; 2007, c. 15, s. 13.

236.1. Any action under this Title or any action under the ordinary rules of law in respect of facts related to the distribution of a security or to a take-over bid or issuer bid may be brought before the court of the plaintiff’s residence.

In matters pertaining to the distribution of a security, the laws of Québec are applicable where the subscriber or purchaser resides in Québec, regardless of the place of the contract.

Any contrary stipulation as to the jurisdiction of the courts or the applicable legislation is without effect.

1987, c. 40, s. 26; 1999, c. 40, s. 327.

TITLE IX ENFORCEMENT

CHAPTER I POWERS OF INVESTIGATION

237. The Authority or its appointed agent may require any document or information it considers expedient for the discharge of its functions to be submitted to it by any of the following persons:

(1)  a registrant;

(2)  a recognized self-regulatory organization or one of its members;

(2.1)  a recognized stock exchange or one of its participants;

(2.2)  a recognized clearing house or a person who has an account with such a clearing house;

(2.3)  a person who operates an alternative trading system that is recognized as a stock exchange or registered as a dealer, or one of its subscribers;

(2.3.1)  a recognized regulation services provider;

(2.4)  a recognized securities information processor or one of its users;

(2.5)  a recognized matching service utility or one of its users;

(3)  a reporting issuer;

(4)  (subparagraph repealed);

(5)  a person submitting an application to the Authority, or filing with it documents required by the Act or the regulations, and the issuer to whom the application or the documents relate;

(6)  a person referred to in section 151.1.1;

(7)  a designated credit rating organization;

(8)  a recognized settlement system or one of its subscribers;

(9)  a recognized central securities depositary or one of its subscribers;

(10)  a person to whom a decision under section 263 applies;

(11)  a designated benchmark administrator, a person who provides information or data applied to establish a designated benchmark, or a person responsible for the computation of a designated benchmark.

In addition, the Authority or its agent may require such persons to confirm by affidavit the authenticity or veracity of submitted documents or information.

In the case of members of a self-regulatory organization, of their officers, of their directors and of their representatives subject to registration, the Authority may, on the conditions it determines, delegate its powers under this section and section 238 to the self-regulatory organization.

1982, c. 48, s. 237; 1984, c. 41, s. 59; 1999, c. 40, s. 327; 2002, c. 45, s. 696; 2004, c. 37, s. 21; 2006, c. 50, s. 81, s. 111; 2008, c. 7, s. 156; 2008, c. 24, s. 212; 2009, c. 58, s. 111; 2013, c. 18, s. 110; 2018, c. 23, ss. 701 and 811; 2021, c. 15, s. 106.

238. The Authority or its appointed agent may require any person referred to in section 237 or any officer, director or employee thereof to submit to examination under oath.

1982, c. 48, s. 238; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 82, s. 111.

239. The Authority may order an investigation

(1)  to ascertain whether the Act and the regulations are complied with;

(2)  to repress contraventions to the Act or the regulations;

(3)  to repress contraventions to the securities legislation of another legislative authority;

(4)  within the scope of an agreement entered into under the second paragraph of section 33 of the Act respecting the regulation of the financial sector (chapter E-6.1);

(5)  to ascertain whether it would be advisable to request the Superior Court to order the appointment of a receiver in accordance with section 19.1 of the Act respecting the regulation of the financial sector.

1982, c. 48, s. 239; 1990, c. 77, s. 38; 2001, c. 38, s. 71; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2008, c. 7, s. 157; 2018, c. 23, s. 811.

240. The first paragraph of section 6, and sections 9, 10, 11, 12, 13 and 16 of the Act respecting public inquiry commissions (chapter C‐37) apply, with the necessary modifications, to investigations under this chapter.

The Authority has, for the purposes of an investigation, all the powers of a judge of the Superior Court, except to order imprisonment.

1982, c. 48, s. 240; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

241. No person called upon to testify in the course of an investigation or being examined under oath may refuse to answer or to produce any document on the ground that he might thereby be incriminated or exposed to a penalty or civil proceedings, subject to the Canada Evidence Act (Revised Statutes of Canada, 1985, chapter C-5).

1982, c. 48, s. 241; 1984, c. 41, s. 60.

242. The Authority may require the submission or delivery of any document related to the object of the investigation. The Authority has the power to return the documents remitted to it or to determine whether or not it is advisable to do so.

1982, c. 48, s. 242; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

243. A person who has remitted documents to the Authority pursuant to section 242 may inspect them or copy them at his own expense, by arrangement with the Authority.

1982, c. 48, s. 243; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

244. Investigations made under section 239 are held in camera.

1982, c. 48, s. 244.

245. The Authority may forbid a person to disclose any information relating to an investigation to anyone but his advocate.

1982, c. 48, s. 245; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

246. A person called on to testify at an investigation or on an examination may be assisted by the advocate of his choice.

1982, c. 48, s. 246.

247. The Authority shall designate a member of its personnel to carry out the investigation.

The Authority may also appoint a person who is not a member of its personnel to carry out the investigation. The appointed person must be sworn before a judge of the Court of Québec or before a member of the Authority in the manner provided in section 2 of the Act respecting public inquiry commissions (chapter C‐37), with the necessary modifications.

1982, c. 48, s. 247; 1984, c. 41, s. 61; 1988, c. 21, s. 66; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

248. The investigator must prove his appointment on request.

For the purposes of the investigation, the investigator has all the powers of the Authority, except to cite for contempt of court.

The investigator shall report to the Authority, and place the transcript of testimony and the documents relating to the investigation at its disposal.

1982, c. 48, s. 248; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

CHAPTER II CONSERVATORY MEASURES

DIVISION I FREEZE ORDERS

249. The Authority may, for the purposes of or in the course of an investigation, request the Financial Markets Administrative Tribunal to

(1)  order the person who is or is about to be under investigation not to dispose of the funds, securities or other assets in his possession;

(2)  order the person who is or is about to be under investigation to refrain from withdrawing funds, securities or other assets from any other person having them on deposit, under control or in safekeeping;

(3)  order any other person not to dispose of the funds, securities or other assets referred to in paragraph 2.

1982, c. 48, s. 249; 2002, c. 45, s. 639; 2004, c. 37, s. 90; 2009, c. 58, s. 112; 2016, c. 7, s. 179.

250. An order made under section 249 is effective from the time the person concerned is notified and, unless otherwise provided, remains binding for a 12-month period; it may be revoked or otherwise amended during that period.

The person concerned shall be notified not less than 15 days before any hearing during which the Financial Markets Administrative Tribunal is to consider an extension. The Financial Markets Administrative Tribunal may grant the extension if the person concerned does not indicate his intention to be heard or if he fails to establish that the reasons for the initial order have ceased to exist.

1982, c. 48, s. 250; 1990, c. 77, s. 39; 2002, c. 45, s. 696; 2008, c. 24, s. 213; 2009, c. 58, s. 113; 2016, c. 7, s. 179; 2018, c. 23, s. 702.

251. If the person named in an order under paragraph 3 of section 249 has leased a safety deposit box to the person concerned or put it at his disposal, he must immediately notify the Authority.

At the request of the Authority, the person shall break open the safety deposit box in the presence of an agent of the Authority, draw up an inventory of the contents in triplicate, and give one copy to the Authority and one copy to the person concerned.

1982, c. 48, s. 251; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

252. No order made under section 249 applies to funds or securities in a clearing-house or with a transfer agent, unless it so states.

1982, c. 48, s. 252.

253. Where an order made under paragraph 3 of section 249 concerns a bank or a financial institution, it applies only to the branches or agencies mentioned therein.

1982, c. 48, s. 253; 2002, c. 45, s. 640; 2011, c. 26, s. 79.

254. An order made under section 249 applies also to funds, securities and other assets received after the effective date of the order.

1982, c. 48, s. 254.

255. Every person directly affected by an order made under section 249, if in doubt as to the application of the order to particular funds, securities or other assets, may apply to the Financial Markets Administrative Tribunal for clarification; the person may also apply for an amendment to or the revocation of the order.

A written notice stating the reasons for the application for amendment or revocation must be filed with the Tribunal. The notice must be served on the Authority not less than 15 days before the hearing set to hear the application.

1982, c. 48, s. 255; 2002, c. 45, s. 696; 2009, c. 58, s. 114; 2016, c. 7, s. 179; 2018, c. 23, s. 703.

256. An order issued under section 239 or 249 is admissible for publication in the same register as that in which rights in the funds, securities or other assets covered by the order are required to be published or admissible for publication.

Likewise, the order may be published in a register kept outside Québec if such orders are admissible for publication under the Act governing the register.

1982, c. 48, s. 256; 1994, c. 13, s. 15; 2003, c. 8, s. 6; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 3, s. 35; 2011, c. 26, s. 80.

DIVISION II

Repealed, 2008, c. 7, s. 158.

2008, c. 7, s. 158.

257. (Repealed).

1982, c. 48, s. 257; 1990, c. 77, s. 40; 1999, c. 40, s. 327; 2002, c. 45, s. 696; 2006, c. 50, s. 83, s. 111; 2008, c. 7, s. 158.

258. (Repealed).

1982, c. 48, s. 258; 1990, c. 77, s. 41; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2008, c. 7, s. 158.

258.1. (Repealed).

1990, c. 77, s. 42; 2008, c. 7, s. 158.

259. (Repealed).

1982, c. 48, s. 259; 1990, c. 77, s. 43; 2008, c. 7, s. 158.

259.1. (Repealed).

1990, c. 77, s. 44; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2008, c. 7, s. 158.

259.2. (Repealed).

1990, c. 77, s. 44; 2008, c. 7, s. 158.

260. (Repealed).

1982, c. 48, s. 260; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2008, c. 7, s. 158.

261. (Repealed).

1982, c. 48, s. 261; 1990, c. 77, s. 45; 2002, c. 45, s. 696; 2008, c. 7, s. 158.

261.1. (Repealed).

1990, c. 77, s. 45; 2008, c. 7, s. 158.

262. (Repealed).

1982, c. 48, s. 262; 1990, c. 77, s. 46; 1995, c. 33, s. 29; 2008, c. 7, s. 158.

DIVISION II.1 PUBLIC INTEREST MEASURES AND REMEDIAL POWERS

2008, c. 7, s. 159.

262.1. Following a failure to comply with a requirement under securities legislation, the Authority may request the Financial Markets Administrative Tribunal to issue one or more of the following orders against any person in order to remedy the situation or to deprive a person of the profit realized as a result of the non-compliance:

(1)  an order requiring the person to comply with

(a)  any provision of this Act or the regulations or any other Act or regulation governing securities;

(b)  any decision of the Authority under this Act or the regulations;

(c)  any regulation, rule or policy of a self-regulating organization or securities exchange, or any decision or order rendered by the Tribunal on the basis of such a regulation, rule or policy;

(2)  an order requiring the person to submit to a review by the Authority of the person’s practices and procedures and to institute such changes as may be directed by the Authority;

(3)  an order rescinding any transaction entered into by the person relating to trading in securities, and directing the person to repay to a security holder any part of the money paid by the security holder for securities;

(4)  an order requiring the person to issue, purchase, exchange or dispose of securities;

(5)  an order prohibiting the voting or exercise of any other right attaching to securities by the person;

(6)  an order requiring the person to produce financial statements in the form required by securities legislation, or an accounting in such other form as may be determined by the Tribunal;

(7)  an order directing the person to hold a shareholders’ meeting;

(8)  an order directing rectification of the registers or other records of the person;

(9)  an order requiring the person to disgorge to the Authority amounts obtained as a result of the non-compliance.

2008, c. 7, s. 159; 2009, c. 58, s. 115; 2016, c. 7, s. 179.

262.2. If the Tribunal issues an order under paragraph 9 of section 262.1, the Tribunal must, if the proof justifying the order shows that persons sustained a loss in the course of the non-compliance referred to in that paragraph 9, order the Authority to submit to the Tribunal the terms under which the amounts disgorged to the Authority will be administered and may be distributed to the persons who have sustained a loss, unless it is shown to the Tribunal that the amounts so disgorged are less than those to be incurred for their distribution.

The terms must provide the following at a minimum:

(1)  the rules according to which the amounts will be deposited with a deposit institution authorized under the Deposit Institutions and Deposit Protection Act (chapter I-13.2.2) or a bank or otherwise invested until the distribution ends;

(2)  the conditions to meet to be entitled to participate in the distribution of the amounts disgorged, including the time limit after which a person may not participate;

(3)  the means that must be taken to notify the persons concerned of the possibility of participating in the distribution of the amounts; and

(4)  the date on which the distribution is to end should the amounts disgorged not be distributed in their entirety.

2018, c. 23, s. 704.

262.3. The Authority must publish the terms that it proposes in its bulletin at least 30 days before submitting them to the Tribunal.

Any interested person may contest the terms before the Tribunal, except the person responsible for the non-compliance against whom the order was issued under paragraph 9 of section 262.1.

The Tribunal shall approve the terms submitted by the Authority with or without amendments; it may also order the Authority to submit new terms.

2018, c. 23, s. 704.

262.4. The Authority shall administer and distribute the amounts in accordance with the terms approved by the Tribunal.

The rules for the simple administration of the property of others apply to the Authority with respect to the amounts disgorged to it while the terms of their administration and distribution have not been approved by the Tribunal.

The Authority may amend the terms by following the procedure provided for in section 262.3.

2018, c. 23, s. 704.

262.5. If the Tribunal issues an order under paragraph 9 of section 262.1 directing that amounts be disgorged to the Authority without ordering the Authority to submit terms of administration and distribution, the Authority must pay the amounts to the Minister of Finance.

The same applies to the balance of the amounts disgorged to the Authority remaining, if any, on the date on which a distribution ends.

2018, c. 23, s. 704.

CHAPTER III OTHER POWERS OF THE AUTHORITY AND THE FINANCIAL MARKETS ADMINISTRATIVE TRIBUNAL

2002, c. 45, s. 642; 2004, c. 37, s. 91; 2004, c. 37, s. 22; 2009, c. 58, s. 116; 2016, c. 7, s. 179.

263. The Authority may, on such conditions as it may determine, exempt a person or a group of persons from any or all of the requirements under Titles II to VI or the regulations where it considers the exemption not to be detrimental to the protection of investors.

The decision is without appeal.

1982, c. 48, s. 263; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

264. The Financial Markets Administrative Tribunal may deny the benefit of an exemption contained in this Act or the regulations where it considers it necessary to do so to protect investors.

In particular, the Financial Markets Administrative Tribunal may deny the benefit of an exemption to any person who has

(1)  made improper use of such an exemption;

(2)  contravened this Act or the regulations;

(3)  contravened any other provision regarding securities;

(4)  contravened the rules of a recognized stock exchange.

1982, c. 48, s. 264; 2002, c. 45, s. 696; 2009, c. 58, s. 117; 2016, c. 7, s. 179.

265. The Financial Markets Administrative Tribunal may order a person to cease any activity in respect of a transaction in securities.

The Financial Markets Administrative Tribunal may, furthermore, order any person or category of persons to cease any activity in respect of a transaction in a particular security.

In the case of failure by a reporting issuer to provide periodic disclosure about its business and internal affairs in accordance with the conditions determined by regulation or failure by an issuer or another person to provide any other disclosure prescribed by regulation in accordance with the conditions determined by regulation, the power to order a person to cease any activity in respect of a transaction in securities shall be exercised by the Authority.

Despite the first paragraph of section 318, the Authority may exercise the power conferred on it by the third paragraph without allowing the person to present observations or submit documents to complete the person’s record.

1982, c. 48, s. 265; 2002, c. 45, s. 696; O.C. 46-2004, s. 1; 2004, c. 37, s. 90; 2006, c. 50, s. 84; 2009, c. 58, s. 117; 2016, c. 7, ss. 160 and 179.

266. The Financial Markets Administrative Tribunal may also order a person to cease acting as an adviser or as an investment fund manager.

1982, c. 48, s. 266; 2002, c. 45, s. 696; 2009, c. 25, s. 39; 2009, c. 58, s. 118; 2016, c. 7, s. 179.

267. An order made under section 265 or 266 has effect from the time the person concerned is notified or becomes aware of it.

In the case of an order concerning a category of persons, publication of the order in the Bulletin or its distribution by any other medium ordinarily available to the persons concerned in the exercise of their profession is valid as notification under the first paragraph.

1982, c. 48, s. 267.

268. The Authority may apply to a judge of the Superior Court for an injunction in respect of any matter relating to this Act or the regulations.

The application for an injunction is an action.

The procedure prescribed in the Code of Civil Procedure (chapter C‐25.01) applies, except that the Authority is not required to give security.

1982, c. 48, s. 268; 2002, c. 45, s. 696; 2004, c. 37, s. 90; I.N. 2016-01-01 (NCCP).

269. The Authority may, of its own initiative and without notice, intervene in any civil action relating to any provision of this Act or the regulations.

1982, c. 48, s. 269; 1987, c. 40, s. 27; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

269.1. The Authority has an interest to bring any action provided for by section 233.1.

1984, c. 41, s. 62; 1987, c. 40, s. 28; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

269.2. The Authority may, where it considers it to be in the public interest, apply to the court for a declaration to the effect that a person has failed to discharge an obligation under this Act or a regulation, and that the person be condemned to pay damages up to the amount of the damage caused to other persons.

The court may also impose punitive damages, or order the person to repay the profits derived as a result of the failure.

An application by the Authority under this section shall be filed in the district in which the residence or principal establishment of the person concerned is situated or, if the person has neither residence nor establishment in Québec, in the district of Montréal.

2001, c. 38, s. 72; 2002, c. 45, s. 696; 2004, c. 37, s. 90; I.N. 2016-01-01 (NCCP).

270. The Financial Markets Administrative Tribunal may prohibit or place restrictions on representations in view of a transaction in a particular security.

1982, c. 48, s. 270; 2002, c. 45, s. 696; 2009, c. 58, s. 119; 2016, c. 7, s. 179.

271. The Authority may order a registrant to submit any advertising document to it before using it.

The Authority may prohibit the use of the advertising document or require it to be changed.

1982, c. 48, s. 271; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

272. The Authority may refuse the filing of documents part or all of which were prepared or signed by a person who during the five years preceding the date of the filing has been convicted of a disciplinary, penal or indictable offence in a matter pertaining to securities, unless he has obtained a pardon therefor.

1982, c. 48, s. 272; 1990, c. 4, s. 900; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

272.1. The Authority may, of its own initiative or upon application by an interested person, take any steps to ensure compliance with an undertaking given to the Authority and with the provisions of this Act and the regulations.

It may, in particular, require changes to any document established under this Act or the regulations, prohibit circulation of a document or order circulation of any changes to an existing document or information.

1990, c. 77, s. 47; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 85; 2008, c. 24, s. 214.

272.2. Of its own initiative or on application by an interested person, the Authority may designate a person to be a non-redeemable investment fund, a mutual fund, an insider or a reporting issuer for the purposes of this Act or decide that a person does not have such a status, if it considers it to be in the public interest to do so.

2006, c. 50, s. 86.

273. The Financial Markets Administrative Tribunal may reprimand a registrant or a self-regulatory organization.

The Financial Markets Administrative Tribunal must give the person concerned prior opportunity to be heard.

1982, c. 48, s. 273; 2002, c. 45, s. 696; 2009, c. 58, s. 119; 2016, c. 7, s. 179.

273.1. Where the Financial Markets Administrative Tribunal becomes aware of facts establishing that a person has, by an act or omission, contravened, or aided in the contravention of, a provision under this Act or a regulation made under its authority, the Tribunal may impose an administrative penalty on the offender and have it collected by the Authority.

The amount of the penalty may in no case exceed $2,000,000 for each contravention.

2001, c. 38, s. 73; 2002, c. 45, s. 641; O.C. 1366-2003, s. 15; 2004, c. 37, s. 23; 2006, c. 50, s. 87, s. 111; 2008, c. 7, s. 160; 2009, c. 58, s. 120; 2011, c. 26, s. 81; 2016, c. 7, s. 179.

273.2. The Financial Markets Administrative Tribunal may impose on a person referred to in section 273.1, in addition to a penalty provided for therein, the obligation to repay to the Authority the cost of any inspection or investigation that provided proof of the facts establishing the failure to comply with the provision concerned, according to the rate established by regulation.

2001, c. 38, s. 73; 2002, c. 45, s. 696; O.C. 46-2004, s. 2; 2004, c. 37, s. 90; 2009, c. 58, s. 121; 2016, c. 7, s. 179.

273.3. The Financial Markets Administrative Tribunal may prohibit a person from acting as a director or officer of an issuer, dealer, adviser or investment fund manager on the grounds set out in article 329 of the Civil Code, or where a penalty has been imposed on the person under this Act, the Act respecting the distribution of financial products and services (chapter D-9.2) or the Derivatives Act (chapter I-14.01).

The prohibition imposed by the Financial Markets Administrative Tribunal may not exceed five years.

The Financial Markets Administrative Tribunal may, at the request of the person concerned, lift the prohibition on such conditions as it considers appropriate.

2001, c. 38, s. 73; 2002, c. 45, s. 696; 2006, c. 50, s. 111; 2009, c. 25, s. 40; 2009, c. 58, s. 122; 2011, c. 26, s. 82; 2016, c. 7, s. 179.

274. The Authority may make policy statements relating to the carrying out of this Act.

The policy statements set out how the Authority intends to exercise its discretionary powers for the purposes of the administration of this Act.

1982, c. 48, s. 274; 1989, c. 48, s. 255; 2001, c. 38, s. 74; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2008, c. 24, s. 215.

274.1. The Authority may impose a monetary administrative penalty for a contravention of or failure to comply with the provisions of, or a regulation under, Title II or III, except section 73 as regards timely disclosure of a material change by a reporting issuer, in the cases, on the conditions and in the amounts prescribed by regulation.

2004, c. 37, s. 24; 2006, c. 50, s. 88; 2009, c. 58, s. 123; 2018, c. 23, s. 809.

275. (Repealed).

1982, c. 48, s. 275; 1997, c. 36, s. 1.

TITLE X ADMINISTRATION OF THE ACT

CHAPTER I GENERAL PROVISIONS

2002, c. 45, s. 643.

276. The Autorité des marchés financiers established under section 1 of the Act respecting the regulation of the financial sector (chapter E-6.1) is responsible for the administration of this Act and shall discharge the functions and exercise the powers specified thereunder.

In addition, the Authority’s mission is

(1)  to promote efficiency in the securities market;

(2)  to protect investors against unfair, improper or fraudulent practices;

(3)  to regulate the information that must be disclosed to security holders and to the public in respect of persons engaging in the distribution of securities and in respect of the securities issued by these persons;

(4)  to define a framework for the activities of the professionals of the securities market and organizations responsible for the operation of a stock market.

1982, c. 48, s. 276; 2002, c. 45, s. 644; 2004, c. 37, s. 90; 2018, c. 23, s. 811.

276.1. (Repealed).

1997, c. 36, s. 2; 1999, c. 40, s. 327; 2002, c. 45, s. 645.

276.2. The Authority may provide consulting and implementation services related to the regulation of the securities market to bodies outside Québec involved in such regulation.

1997, c. 36, s. 2; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

276.3. The Authority shall advise the Minister on any matter he submits to it concerning securities.

1997, c. 36, s. 2; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

276.4. (Repealed).

1997, c. 36, s. 2; 2002, c. 45, s. 646; 2004, c. 37, s. 90; 2008, c. 7, s. 162.

276.5. (Repealed).

1997, c. 36, s. 2; 2002, c. 45, s. 647.

277. (Repealed).

1982, c. 48, s. 277; 2001, c. 38, s. 75; 2002, c. 45, s. 647.

278. (Repealed).

1982, c. 48, s. 278; 2002, c. 45, s. 647.

278.1. (Repealed).

1997, c. 36, s. 3; 2002, c. 45, s. 647.

279. (Repealed).

1982, c. 48, s. 279; 1999, c. 40, s. 327; 2002, c. 45, s. 647.

280. (Repealed).

1982, c. 48, s. 280; 2002, c. 45, s. 647.

281. (Repealed).

1982, c. 48, s. 281; 2001, c. 38, s. 76.

281.1. (Repealed).

2001, c. 38, s. 77; 2002, c. 45, s. 647.

282. (Repealed).

1982, c. 48, s. 282; 2002, c. 45, s. 647.

283. No proceeding may be brought against the Authority, a member of its personnel, its appointed agent or any person exercising a delegated power, for official acts done in good faith in the exercise of their functions.

1982, c. 48, s. 283; 1984, c. 41, s. 63; 2001, c. 38, s. 78; 2002, c. 45, s. 648; 2004, c. 37, s. 91.

283.1. The Authority may delegate its powers to review its decisions, order an investigation under section 239, institute court proceedings under this Act in the name of the Authority or make a decision under Title VI only to a superintendent or to another officer reporting directly to the president and director general of the Authority.

The first paragraph does not prevent the Authority from delegating its powers in accordance with Chapter II of this Title.

2006, c. 50, s. 90.

284. No application for judicial review under the Code of Civil Procedure (chapter C-25.01) may be exercised nor any injunction granted against the Authority, the members of its personnel or its agents acting in their official capacity.

1982, c. 48, s. 284; 2002, c. 45, s. 649; 2004, c. 37, s. 90; I.N. 2016-01-01 (NCCP).

285. (Inoperative).

1982, c. 48, s. 285; 2002, c. 45, s. 696; 2004, c. 37, s. 90; I.N. 2016-01-01 (NCCP).

286. A judge of the Court of Appeal, upon an application, may annul summarily any decision rendered contrary to section 284 or 285.

1982, c. 48, s. 286; I.N. 2016-01-01 (NCCP).

287. (Repealed).

1982, c. 48, s. 287; 1996, c. 2, s. 990; 2002, c. 45, s. 650.

288. (Repealed).

1982, c. 48, s. 288; 2002, c. 45, s. 650.

289. (Repealed).

1982, c. 48, s. 289; 2002, c. 45, s. 650.

290. (Repealed).

1982, c. 48, s. 290; 2002, c. 45, s. 650.

291. (Repealed).

1982, c. 48, s. 291; 2002, c. 45, s. 650.

292. The Authority may appoint any expert whose assistance it deems expedient in the pursuit of the mission conferred on it by this Act.

1982, c. 48, s. 292; 2002, c. 45, s. 651; 2004, c. 37, s. 90.

293. Every document required under this Act or a regulation made hereunder must be forwarded to or deposited at the office of the Authority, at the place determined by the Authority; notice of the address of the office shall be published in the Gazette officielle du Québec and in the Authority’s bulletin.

1982, c. 48, s. 293; 2002, c. 45, s. 652; 2004, c. 37, s. 90.

294. Documents intended for the Authority are served on the secretary.

1982, c. 48, s. 294; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

294.1. The Authority may allow a document or attestation required by the legislation of another legislative authority to be substituted for a document or attestation prescribed by this Act or a regulation made under this Act.

The Authority may also accept the substitution of other documents for such documents and attestations, provided that they contain equivalent information.

2001, c. 38, s. 79; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 92.

295. (Repealed).

1982, c. 48, s. 295; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2018, c. 23, s. 705.

295.1. (Repealed).

1990, c. 77, s. 48; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 93; 2008, c. 7, s. 162.

295.2. (Repealed).

2002, c. 45, s. 653; 2004, c. 37, s. 90; 2008, c. 7, s. 162.

296. Any person may have access to all documents required to be filed under this Act or the regulations, except documents filed by a registrant otherwise than pursuant to the requirements prescribed in Title III.

Where the Authority deems that the communication of a document could result in serious prejudice, it may declare the document inaccessible.

This section applies notwithstanding section 9 of the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A‐2.1).

1982, c. 48, s. 296; 1987, c. 68, s. 120; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

297. Investigation reports, inspection reports and supporting evidence may be inspected only with the authorization of the Authority, notwithstanding section 9 of the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A‐2.1).

1982, c. 48, s. 297; 1987, c. 68, s. 121; 1990, c. 77, s. 49; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

297.1. The Authority may communicate any information, including personal information, without the consent of the person concerned, to a person or organization responsible, by law, for the prevention, detection or repression of crime or statutory offences outside Québec, if the information relates to an offence under this Act or under securities legislation applicable outside Québec.

The Authority may also communicate any information, including personal information, about an issuer, a person to which section 151.1.1 applies, an issuer’s auditor, a person required to be registered under Title V, an officer, a director, an insider, a promoter or a person having, even indirectly, significant influence on an issuer, a registrant, a self-regulatory organization, a person referred to in section 169, 171 or 186.1 or a company involved in a take-over bid or issuer bid or a merger or reorganization, without the consent of the person concerned, to a person, even outside Québec, acting in the securities regulation or monitoring field or to a central bank, including for the purposes of a common database containing personal information.

Likewise, the Authority may communicate any information, including personal information, without the consent of the person concerned, to a police force if there is reasonable cause to believe that the person has committed or is about to commit a criminal or penal offence against an Act applicable in or outside Québec with respect to the Authority or one of its employees or relating to a securities provision and the information is required for the related investigation.

The Authority may also communicate any information, including personal information, to the Minister of Revenue, without the consent of the person concerned, if there is reasonable cause to believe that the person has committed or is about to commit an offence under this Act that may have an impact on the administration or enforcement of a fiscal law.

2001, c. 38, s. 80; 2002, c. 45, s. 696; 2004, c. 37, s. 27, s. 90; 2006, c. 50, s. 94; 2013, c. 18, s. 111.

297.2. In a case not provided for in section 297.1, with the authorization of a judge of the Court of Québec, the Authority may communicate any information, including personal information, without the consent of the person concerned, to a member of a police force.

The application for authorization must be made in writing and contain an affidavit that there is reasonable cause to believe the information may serve to prevent, detect or repress the commission of an indictable offence against an Act applicable in or outside Québec.

The application and the record pertaining to the hearing are confidential. The clerk of the Court of Québec shall take the necessary measures to preserve their confidentiality.

The judge to whom the application for authorization is made shall hear the application ex parte and in camera. The judge may make any order to preserve the confidentiality of the application, the record and the personal information. The record shall be sealed and kept in a place inaccessible to the public.

2004, c. 37, s. 28; I.N. 2016-01-01 (NCCP).

297.3. The Authority may communicate any information, including personal information, without the consent of the person concerned, to a person pursuant to an agreement or treaty entered into under an Act.

2004, c. 37, s. 28; 2006, c. 50, s. 95.

297.4. The Authority may, in accordance with section 68 of the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A‐2.1), enter into an agreement with a department or a body for the communication of personal information to facilitate the administration or enforcement of securities and fiscal legislation and penal or criminal legislation.

2004, c. 37, s. 28.

297.5. (Repealed).

2004, c. 37, s. 28; 2009, c. 25, s. 41.

297.6. Sections 297.1 to 297.5 apply despite sections 23 and 24 and subparagraphs 5 and 9 of the first paragraph of section 28 of the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A‐2.1), and sections 297.1, 297.2 and 297.5 apply despite section 59 of that Act.

2004, c. 37, s. 28.

298. The Authority must publish a bulletin periodically to inform financial circles of its activities. The Bulletin must contain, in particular, applications received, decisions rendered, policy statements and information filed.

1982, c. 48, s. 298; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

299. (Repealed).

1982, c. 48, s. 299; 1983, c. 55, s. 161; 1997, c. 36, s. 4; 2000, c. 8, s. 223; 2002, c. 45, s. 654.

300. (Repealed).

1982, c. 48, s. 300; 2001, c. 38, s. 81.

301. (Repealed).

1982, c. 48, s. 301; 1983, c. 55, s. 161; 2001, c. 38, s. 82; 2002, c. 45, s. 654.

301.1. (Repealed).

1997, c. 36, s. 5; 2002, c. 45, s. 654.

302. The Authority must, no later than 31 July each year, submit to the Minister a report of its activities related to the administration of this Act for the preceding year.

The Minister shall table the Authority’s activities report in the National Assembly within 30 days of its receipt or, if the Assembly is not sitting, within 30 days of resumption.

1982, c. 48, s. 302; 1982, c. 62, s. 143; 2002, c. 45, s. 655; 2004, c. 37, s. 90.

302.1. At the end of every fiscal year, the Authority shall remit to the Office québécois de la langue française a report of the use it has made of its power to grant exemptions under section 263 with regard to the obligation enacted in section 40.1.

The Office shall determine the mode of drawing up the report.

1983, c. 56, s. 45; 2002, c. 28, s. 37; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

303. (Repealed).

1982, c. 48, s. 303; 2002, c. 45, s. 656; 2004, c. 37, s. 90; 2008, c. 7, s. 163.

304. (Repealed).

1982, c. 48, s. 304; 2002, c. 45, s. 657.

305. (Repealed).

1982, c. 48, s. 305; 2002, c. 45, s. 657.

CHAPTER II INTERJURISDICTIONAL COOPERATION

2006, c. 50, s. 96.

305.1. For the purposes of this chapter, section 5.4 and paragraphs 33.1 to 33.9 of section 331.1, unless the context indicates otherwise,

“extra-provincial authority” means any power or function of an extra-provincial securities commission under the extra-provincial securities laws under which that commission operates;

“extra-provincial securities commission” means a person empowered by the laws of another province or a territory of Canada to regulate the securities markets in or administer and enforce the securities laws of that province or territory;

“extra-provincial securities laws” means the laws administered by an extra-provincial securities commission that deal with regulating securities markets and are equivalent to Québec securities laws;

“Québec authority” means any power or function of the Authority or the Financial Markets Administrative Tribunal under Québec securities laws;

“Québec securities laws” means

(1)  this Act;

(2)  any other Québec laws governing securities markets, including the Act respecting the regulation of the financial sector (chapter E-6.1) and the Act respecting the distribution of financial products and services (chapter D-9.2);

(2.1)  the Derivatives Act (chapter I-14.01);

(3)  regulations under any of the Acts referred to in paragraphs 1 to 2.1;

(4)  the decisions and orders of the Authority or the Financial Markets Administrative Tribunal; and

(5)  the extra-provincial securities laws provisions referred to in sections 308 and 308.0.1.

Unless otherwise provided, a reference to an extra-provincial securities commission includes any person to which that securities commission delegates an authority and any other person that, in respect of that securities commission, exercises powers or performs functions substantially similar to a Québec authority.

2006, c. 50, s. 97; 2008, c. 24, s. 216; 2009, c. 58, s. 124; 2016, c. 7, s. 179; 2018, c. 23, s. 811.

DIVISION I DELEGATION OF AUTHORITY

2006, c. 50, s. 97.

306. The Government or, with the Government’s authorization, the Authority may, according to law, enter into an agreement with another government or an extra-provincial securities commission for the delegation of a Québec authority and for the exercise of an extra-provincial authority in accordance with this chapter.

1982, c. 48, s. 306; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 98.

307. The Authority may, by regulation, delegate a Québec authority to an extra-provincial securities commission and accept to exercise an extra-provincial authority.

1982, c. 48, s. 307; 1986, c. 95, s. 338; 2001, c. 38, s. 83; 2002, c. 45, s. 658; O.C. 495-2004, s. 6; 2006, c. 50, s. 99.

307.1. The Authority may also, by order or decision, to the extent and on the conditions determined by regulation, delegate a Québec authority to an extra-provincial securities commission and accept to exercise an extra-provincial authority.

2006, c. 50, s. 99.

307.2. The following powers and functions may not, however, be delegated under section 306, 307 or 307.1:

(1)  the powers and functions of the Authority under Title X of this Act, except those provided for in sections 310, 320.2, 321, 322, 331 and 331.1;

(2)  the powers and functions of the Authority under the Act respecting the regulation of the financial sector (chapter E-6.1), except those provided for in the third paragraph of section 24 and Title III; however, the power to make regulations under the third paragraph of section 61 in that Title may not be delegated; and

(3)  the powers and functions provided for in Titles V to VI of the Act respecting the distribution of financial products and services (chapter D-9.2);

(4)  the powers and functions provided for under sections 110 to 112, 174 and 175 of the Derivatives Act (chapter I-14.01).

2006, c. 50, s. 99; 2008, c. 24, s. 217; 2009, c. 25, s. 42; 2013, c. 18, s. 112; 2018, c. 23, s. 811.

307.3. The Authority may delegate or subdelegate to a member of its personnel or to a self-regulatory organization an extra-provincial authority that has been delegated to the Authority by an extra-provincial securities commission under section 306, 307 or 307.1, in the manner and to the extent that the Authority may delegate or subdelegate the equivalent Québec authority under Québec securities laws, subject to any restrictions or conditions imposed by the extra-provincial securities commission.

An extra-provincial securities commission to which a Québec authority has been delegated under section 306, 307 or 307.1 may delegate or subdelegate that Québec authority to a member of its personnel or to a self-regulatory organization, in the manner and to the extent that it may delegate or subdelegate the equivalent extra-provincial authority under the extra-provincial securities laws under which it operates, subject to any restrictions or conditions imposed by the Authority.

2006, c. 50, s. 99.

307.4. The Authority or the Financial Markets Administrative Tribunal may call before it any matter that is before an extra-provincial securities commission exercising or intending to exercise a Québec authority delegated to it under section 306, 307 or 307.1, and may exercise that Québec authority in that commission’s stead.

2006, c. 50, s. 99; 2009, c. 58, s. 125; 2016, c. 7, s. 179.

307.5. A decision made under Québec securities laws by an extra-provincial securities commission in accordance with section 306, 307, 307.1 or 307.3 of this Act is subject to section 322 of this Act and to section 85 of the Act respecting the regulation of the financial sector (chapter E-6.1), with the necessary modifications, as if the decision were made by the Authority or a recognized self-regulatory organization.

2006, c. 50, s. 99; 2018, c. 23, s. 811.

307.6. Chapter III of Title IV of the Act respecting the regulation of the financial sector (chapter E-6.1) applies to a decision made by an extra-provincial securities commission in the exercise of a Québec authority delegated under section 306, 307 or 307.1 as if the decision were made by the Financial Markets Administrative Tribunal.

The extra-provincial securities commission that made the decision under appeal is a respondent to an appeal under this section.

2006, c. 50, s. 99; 2009, c. 58, s. 126; 2013, c. 18, s. 113; 2016, c. 7, s. 179; 2018, c. 23, s. 811.

307.7. A decision made by a court in the jurisdiction of an extra-provincial securities commission on an appeal from a decision made by that securities commission in the exercise of a Québec authority delegated under section 306, 307 or 307.1 may, if authenticated by that court, be recognized by the Superior Court on the application of an interested person. The decision becomes enforceable on being so recognized.

2006, c. 50, s. 99.

307.8. Chapter III of Title IV of the Act respecting the regulation of the financial sector (chapter E-6.1) applies to a decision made by the Financial Markets Administrative Tribunal in the exercise of an extra-provincial authority under section 306, 307 or 307.1 as if the decision were made under this Act.

This section does not apply to a decision refusing to exempt a person or group of persons from a requirement of extra-provincial securities laws.

The right to appeal a decision under this section applies whether or not a right to appeal the same decision exists in another province or a territory of Canada.

2006, c. 50, s. 99; 2009, c. 58, s. 126; 2013, c. 18, s. 114; 2016, c. 7, s. 179; 2018, c. 23, s. 811.

DIVISION II INCORPORATION BY REFERENCE, RECOGNITION AND RECIPROCITY OF CERTAIN DECISIONS OR AGREEMENTS

2006, c. 50, s. 99; 2016, c. 7, s. 161.

§ 1 . — Incorporation by reference and recognition

2016, c. 7, s. 161.

308. The Authority may, by regulation, incorporate by reference any or all provisions of extra-provincial securities laws.

1982, c. 48, s. 308; 1992, c. 35, s. 14; 2001, c. 38, s. 84; 2002, c. 45, s. 659; 2004, c. 37, s. 31; 2006, c. 50, s. 99.

308.0.1. Subject to conditions determined by regulation, the Authority may, by order or decision, incorporate by reference any or all provisions of extra-provincial securities laws to be applied to a person or class of persons whose primary jurisdiction is the extra-provincial jurisdiction in which the provisions were first adopted, or to securities, related financial instruments or transactions involving that person or class of persons.

2006, c. 50, s. 99.

308.0.2. The Authority may, by an order, decision or regulation under section 308 or 308.0.1, incorporate by reference a provision as amended from time to time, whether amended before or after the adoption of the order, decision or regulation, and with the necessary modifications.

2006, c. 50, s. 99.

308.0.3. Subject to conditions determined by regulation, the Authority, the Financial Markets Administrative Tribunal or a recognized self-regulatory organization may make a decision or order under a Québec authority regarding a person, class of persons, security, related financial instrument or transaction on the basis of a decision considered to be the same or substantially similar made by an extra-provincial securities commission on the same matter regarding that person, class of persons, security, related financial instrument or transaction.

Despite any other provision of this Act, the Authority, the Financial Markets Administrative Tribunal or a recognized self-regulatory organization may make a decision referred to in the first paragraph without again giving the interested person an opportunity to be heard, except in the cases determined by regulation.

2006, c. 50, s. 99; 2009, c. 58, s. 127; 2016, c. 7, s. 179.

308.1. (Repealed).

2004, c. 37, s. 32; 2006, c. 50, s. 100; 2016, c. 7, s. 169.

308.1.1. The Authority may also, by regulation, allow an extra-provincial authority to be recognized in Québec in the areas specifically listed in the regulations, with respect to the persons or organizations subject to such authority.

A regulation under the first paragraph is applicable only if the equivalent Québec authority is recognized in the jurisdiction of the extra-provincial securities commission with respect to the persons or organizations subject to such authority.

2006, c. 50, s. 101.

308.2. This division allows an agreement or regulation to stipulate, in the areas specifically listed in the agreement or regulation,

(1)  that the acts or decisions of an authority having jurisdiction in a province or territory are recognized in the other province or territory;

(2)  that the powers exercised or the decisions made in a province or territory are presumed or deemed, as the case may be, to have been exercised or made in the other province or territory; and

(3)  that the persons or bodies having fulfilled certain obligations in a province or territory are exempted from fulfilling them in the other province or territory.

2004, c. 37, s. 32; 2006, c. 50, s. 102.

308.2.1. The Authority may, by regulation or to the extent and on the conditions determined by regulation, decision or order, determine that

(1)  a receipt is deemed to have been issued by the Authority in accordance with Title II or a regulation made under that Title for a prospectus or an amendment to a prospectus, including when a receipt has been issued for the same prospectus or the same amendment to a prospectus by an extra-provincial securities commission or under extra-provincial securities laws;

(1.1)  the status of the issuer or a category of issuer as a reporting issuer is deemed to be revoked in accordance with Title III or a regulation made for the purposes of that Title, including where that status is revoked by an extra-provincial securities commission or under extra-provincial securities laws;

(2)  a person or class of persons is deemed to be authorized to carry on an activity under Title V, or a regulation under that Title, including when the person or class of persons is authorized to carry on the activity by an extra-provincial securities commission or under extra-provincial securities laws;

(3)  a person or class of persons is deemed to be recognized or designated in accordance with Title VI or a regulation made under that Title, including when the person or class of persons is recognized or designated by an extra-provincial securities commission or under extra-provincial securities laws;

(4)  a person or class of persons is deemed to be exempted from all or part of the requirements of Québec securities laws when an exemption has been granted for the same purpose by an extra-provincial securities commission or under extra-provincial securities laws; and

(5)  an activity in respect of transactions in securities or in a particular security is deemed to be prohibited under section 265, including when an extra-provincial securities commission has imposed the same prohibition under a power similar to the Authority’s power under section 265.

2006, c. 50, s. 103; 2008, c. 24, s. 218; 2009, c. 25, s. 43; 2011, c. 18, s. 82; 2016, c. 7, s. 162.

§ 2 . — Reciprocity of certain decisions or agreements

2016, c. 7, s. 163.

308.2.1.1. In this subdivision, unless the context indicates otherwise, “securities authority in Canada” means a securities commission or person empowered by law to regulate the securities markets in or to administer and enforce the securities laws of any province or territory of Canada, or a person prescribed by regulation, except a self-regulatory organization, exchange, clearing-house, quotation and trade reporting system, credit rating organization or benchmark administrator or the body referred to in section 71.1.

2016, c. 7, s. 163; 2018, c. 23, s. 706.

308.2.1.2. If it meets the conditions set out in section 308.2.1.3, a decision rendered by a securities authority in Canada and imposing sanctions, conditions, restrictions or obligations on a person entails, by operation of law, an absolute presumption that a decision having the same effect in Québec was rendered in respect of the person by the Authority or the Tribunal, according to their respective jurisdictions.

If it meets the same conditions, an agreement entered into between a securities authority in Canada and a person and imposing sanctions, conditions, restrictions or obligations on that person entails, by operation of law, an absolute presumption that an agreement having the same effect in Québec was entered into in Québec between the person and the Authority or the Tribunal, according to their respective jurisdictions.

2016, c. 7, s. 163.

308.2.1.3. Section 308.2.1.2 applies to a decision or agreement that

(1)  is the result of findings or admissions of contravention of laws governing securities markets or of conduct contrary to the public interest; and

(2)  is not based solely on a decision deemed to have been rendered by another securities authority in Canada or an agreement deemed to have been made with such an authority.

2016, c. 7, s. 163.

308.2.1.4. If the decision or agreement that entailed an absolute presumption under section 308.2.1.2 is amended or ceases to have effect, the decision deemed to have been rendered or the agreement deemed to have been made under that section is deemed, as the case may be, to have been amended in the same way or to cease to have effect.

2016, c. 7, s. 163.

308.2.1.5. On an application by a person who is subject to sanctions, conditions, restrictions or obligations imposed by the decision or agreement that entailed an absolute presumption under section 308.2.1.2, the Authority or the Tribunal, according to their respective jurisdictions, may clarify the application of that section to that person and thus bind the person as well as the Authority or the Tribunal, as the case may be.

The Authority may also present the application provided for in the first paragraph to the Tribunal.

2016, c. 7, s. 163.

308.2.1.6. No one may be required to pay any amount because of the application of this subdivision.

2016, c. 7, s. 163.

DIVISION III GENERAL PROVISIONS

2006, c. 50, s. 103.

308.2.2. For the purposes of sections 307, 307.1, 307.3, 308, 308.0.1, 308.0.2 and 308.1.1, the Government shall, by order, exercise, with respect to any Québec authority of the Financial Markets Administrative Tribunal, the powers and functions specified in the order, to the extent and in accordance with the conditions it determines.

2006, c. 50, s. 103; 2009, c. 58, s. 128; 2016, c. 7, s. 179.

Not in force

308.3. The Government may, by regulation, make any provision for the carrying out of this chapter, including provisions that differ from those set out in Québec securities laws.

2004, c. 37, s. 32; 2006, c. 50, s. 104.

Not in force

308.4. An agreement made under this chapter shall be published in the Gazette officielle du Québec.

2004, c. 37, s. 32.

CHAPTER III CONTROL EXERCISED BY THE AUTHORITY

2002, c. 45, s. 660; 2004, c. 37, s. 90.

309. The Authority may call before it any matter that is before a person exercising a delegated power and decide it in his stead.

1982, c. 48, s. 309; 2002, c. 45, s. 661; 2004, c. 37, s. 90.

310. Subject to section 322, the Authority may, of its own initiative, review any decision made by a person exercising a delegated power, by a person recognized under sections 169 to 171 or by a self-regulatory organization.

The Authority must give the persons referred to in the first paragraph or the self-regulatory organization an opportunity to present observations or produce documents to complete the person’s record within the time prescribed in section 318.

1982, c. 48, s. 310; 2002, c. 45, s. 662; 2004, c. 37, s. 33; 2006, c. 50, s. 105; 2008, c. 24, s. 219.

311. Any person examining a matter pursuant to a delegation of power may refer it to the Authority.

1982, c. 48, s. 311; 2002, c. 45, s. 663; 2004, c. 37, s. 90.

CHAPTER IV RULES APPLICABLE TO DECISIONS OF THE AUTHORITY

2002, c. 45, s. 664; 2004, c. 37, s. 90.

312. The Authority may, within the scope of its powers, participate in the making of any decision in conjunction with any other authority responsible for the supervision of securities trading.

1982, c. 48, s. 312; 2002, c. 45, s. 665; 2004, c. 37, s. 90.

312.1. (Repealed).

2001, c. 38, s. 85; 2002, c. 45, s. 666; 2004, c. 37, s. 90; 2018, c. 23, s. 707.

313. The Authority shall exercise its powers according to the rules referred to in section 35 of the Act respecting the regulation of the financial sector (chapter E-6.1).

The Authority shall determine the supplementary rules of procedure applicable to the conduct of its affairs.

1982, c. 48, s. 313; 2002, c. 45, s. 667; 2004, c. 37, s. 90; 2018, c. 23, s. 811.

314. (Repealed).

1982, c. 48, s. 314; 1984, c. 41, s. 64; 1986, c. 95, s. 339; 2002, c. 45, s. 668.

314.1. By way of exception, the Authority may suspend the making of a decision until the applicant undertakes to pay the cost of the research work that the Authority considers necessary in order to make a decision on the application filed with it.

Similarly, the Authority may require the applicant to pay the representation costs incurred by investors or, if it is in the public interest, it may pay such costs itself.

2001, c. 38, s. 86; 2002, c. 45, s. 669; 2004, c. 37, s. 90.

315. (Repealed).

1982, c. 48, s. 315; 2002, c. 45, s. 670.

316. The Authority shall exercise the discretion conferred on it in accordance with the public interest.

1982, c. 48, s. 316; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

317. (Repealed).

1982, c. 48, s. 317; 2002, c. 45, s. 672.

318. The Authority or a person exercising a delegated power must, before making a decision unfavourably affecting the rights of a person, give that person a 15-day prior notice of the Authority’s or person’s intention indicating the grounds on which it is based and the right of the person to present observations or produce documents to complete the person’s record.

However, the Authority or the person exercising a delegated power may, without prior notice, make a decision valid for a period not exceeding 15 days if the Authority or person is of the opinion that there is urgency or that any period of time granted to the person concerned to present observations may be detrimental.

The decision must state the reasons on which it is based and is effective as of the time the Authority sends the notice to the person concerned. That person may, within six days of receiving the decision, present observations to the Authority or, where applicable, to the person exercising the delegated power.

The Authority or the person exercising the delegated power may revoke such a decision.

1982, c. 48, s. 318; 2002, c. 45, s. 673; 2004, c. 37, s. 34.

318.1. For the purpose of rendering a decision, the Authority or a person exercising a delegated power may, within the scope of a consultation mechanism established by regulation or an agreement under the second paragraph of section 33 of the Act respecting the regulation of the financial sector (chapter E-6.1), consider a factual analysis prepared by the personnel of an organization pursuing similar objects.

2001, c. 38, s. 87; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2008, c. 7, s. 164; 2018, c. 23, s. 811.

318.2. Despite the first paragraph of section 318, the Authority may make a decision under the third paragraph of section 265, section 271, the second paragraph of section 272.1 or section 272.2 based, rather than on any facts referred to in those provisions, on a fact referred to in any of paragraphs 1 to 3, without allowing the person to present observations or submit documents to complete the file:

(1)  the person was convicted, in Canada or outside Canada, of an indictable offence related to a securities transaction or activity or to conduct involving securities or of an offence under a law governing securities markets;

(2)   the person contravened, according to a court in or outside Canada, a law governing securities markets;

(3)  the person is subject to a decision imposing sanctions, conditions, restrictions or obligations that was rendered by one of the persons referred to below, or made an agreement with one of those persons that imposes sanctions, conditions, restrictions or obligations on the person:

(a)  a securities authority in Canada, if the decision or agreement does not meet the conditions set out in paragraph 1 of section 308.2.1.3,

(b)  a securities authority outside Canada,

(c)  a self-regulatory organization recognized in Canada, or

(d)  an exchange in Canada;

(4)  (paragraph repealed);

(5)  (paragraph repealed).

However, the Authority may only make a decision under the third paragraph of section 265 in a case of failure to provide disclosure that, had it occurred in Québec, could have been the subject of a decision of the Authority.

For the purposes of the first paragraph, “securities authority outside Canada” means a securities commission, self-regulatory organization, exchange or person or body empowered by law to regulate the securities markets or to administer or enforce securities laws in any jurisdiction outside of Canada.

2008, c. 7, s. 165; 2016, c. 7, s. 164.

319. The Authority or the person exercising delegated powers must give reasons for every decision that adversely affects the rights of a person.

1982, c. 48, s. 319; 2002, c. 45, s. 674; 2004, c. 37, s. 90.

320. A decision made by the Authority or a person exercising a delegated power shall be sent by the Authority to the person concerned.

However, a decision rendered by a self-regulatory organization or by a person or committee exercising a power sub-delegated by it shall be sent by the self-regulatory organization.

1982, c. 48, s. 320; 1990, c. 77, s. 50; 2002, c. 45, s. 675; 2004, c. 37, s. 90; 2008, c. 24, s. 220.

320.1. Every decision of the Authority or a person exercising a delegated power may be homologated at the request of the Authority by the Superior Court or the Court of Québec, according to their respective jurisdictions, at the expiry of the time prescribed for applying for a review of the decision before the Financial Markets Administrative Tribunal, and the decision becomes executory under the authority of the court that has homologated it.

1990, c. 77, s. 51; 2001, c. 38, s. 88; 2002, c. 45, s. 676; 2004, c. 37, s. 90; 2009, c. 58, s. 128; 2016, c. 7, s. 179.

320.2. A decision containing a clerical error, a mistake in calculation or any other error of form may be rectified on the record by the Authority or the person exercising delegated power having taken part in the decision.

2001, c. 38, s. 89; 2002, c. 45, s. 677; 2004, c. 37, s. 90.

321. A person having rendered a decision under delegated powers may review it if justified by a new fact.

1982, c. 48, s. 321; 1986, c. 95, s. 340; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2008, c. 24, s. 221; 2009, c. 58, s. 129.

321.1. For the purposes of section 81 of the Act respecting the regulation of the financial sector (chapter E-6.1) and sections 283, 318 to 319 and 321 of this Act, the person or committee exercising a power subdelegated under section 62 of the Act respecting the regulation of the financial sector is the person exercising a delegated power.

2002, c. 45, s. 678; 2004, c. 37, s. 90; 2018, c. 23, s. 811.

322. A person directly affected by a decision rendered by the Authority, by a person referred to in sections 169 to 171 or by a recognized self-regulatory organization may, within 30 days, apply for a review of the decision by the Financial Markets Administrative Tribunal established under section 92 of the Act respecting the regulation of the financial sector (chapter E-6.1).

However, a decision under which a penalty is to be imposed cannot be submitted for review until the penalty has been imposed.

1982, c. 48, s. 322; 1990, c. 77, s. 52; 2002, c. 45, s. 679; 2004, c. 37, s. 35; 2006, c. 50, s. 106; 2008, c. 24, s. 222; 2009, c. 58, s. 130; 2013, c. 18, s. 115; 2016, c. 7, s. 179; 2018, c. 23, s. 811.

CHAPTER V RULES APPLICABLE TO HEARINGS AND DECISIONS OF THE FINANCIAL MARKETS ADMINISTRATIVE TRIBUNAL

2002, c. 45, s. 680; 2009, c. 58, s. 130; 2016, c. 7, s. 179.

323. (Repealed).

1982, c. 48, s. 323; 1990, c. 77, s. 53; 2002, c. 45, s. 681; 2009, c. 58, s. 131.

323.1. (Repealed).

1990, c. 77, s. 54; 1992, c. 35, s. 15; 2002, c. 45, s. 682; 2009, c. 58, s. 131.

323.2. (Repealed).

2002, c. 45, s. 682; 2009, c. 58, s. 131.

323.3. (Repealed).

2002, c. 45, s. 682; 2009, c. 58, s. 131.

323.4. (Repealed).

2002, c. 45, s. 682; 2009, c. 58, s. 131.

323.5. (Repealed).

2002, c. 45, s. 682; O.C. 1366-2003, s. 8; 2004, c. 37, s. 90; 2009, c. 58, s. 132; 2011, c. 26, s. 83.

323.6. (Repealed).

2002, c. 45, s. 682; 2009, c. 58, s. 133.

323.7. (Repealed).

2002, c. 45, s. 682; 2009, c. 58, s. 133.

323.8. (Repealed).

2002, c. 45, s. 682; 2008, c. 7, s. 166; 2009, c. 58, s. 133.

323.8.1. Despite sections 102, 107 to 110, 115, 115.1, 115.3, 115.5, 115.6 and 115.15.58 of the Act respecting the regulation of the financial sector (chapter E-6.1), the Tribunal may make a decision under section 152, paragraph 1, 2 or 3 of section 262.1, section 264, the first or second paragraph of section 265 or section 266, 270 or 273.3, based, rather than on any facts referred to in those provisions, on a fact referred to in any of paragraphs 1 to 3 of section 318.2, without hearing the person concerned again, unless it is in regard to one of those facts.

If urgent action is required or to prevent irreparable injury, the decision may be made in the absence of the person concerned. In such a case, the Tribunal must give the person the opportunity to be heard within 15 days in regard to one of the facts referred to in the first paragraph.

2008, c. 7, s. 167; 2008, c. 24, s. 223; 2009, c. 58, s. 134; 2013, c. 18, s. 116; 2016, c. 7, ss. 165 and 179; 2018, c. 23, ss. 708 and 811.

323.8.2. (Repealed).

2016, c. 7, s. 166; 2018, c. 23, s. 709.

323.9. (Repealed).

2002, c. 45, s. 682; 2009, c. 58, s. 135.

323.10. (Repealed).

2002, c. 45, s. 682; 2009, c. 58, s. 135.

323.11. (Repealed).

2002, c. 45, s. 682; 2009, c. 58, s. 135.

323.12. (Repealed).

2002, c. 45, s. 682; 2009, c. 58, s. 135.

323.13. (Repealed).

2002, c. 45, s. 682; 2009, c. 58, s. 135.

CHAPTER VI

Heading repealed, 2009, c. 58, s. 136.

2009, c. 58, s. 136.

324. (Repealed).

1982, c. 48, s. 324; 1988, c. 21, s. 66; 1990, c. 77, s. 55; 2001, c. 38, s. 90; 2002, c. 45, s. 696; 2009, c. 58, s. 136.

325. (Repealed).

1982, c. 48, s. 325; 2002, c. 45, s. 696; 2009, c. 58, s. 136.

326. (Repealed).

1982, c. 48, s. 326; 1984, c. 41, s. 65; 1988, c. 21, s. 66; 2009, c. 58, s. 136.

327. (Repealed).

1982, c. 48, s. 327; 2009, c. 58, s. 136.

328. (Repealed).

1982, c. 48, s. 328; 2002, c. 45, s. 696; 2009, c. 58, s. 136.

329. (Repealed).

1982, c. 48, s. 329; 1988, c. 21, s. 66; 2002, c. 45, s. 696; 2009, c. 58, s. 136.

330. (Repealed).

1982, c. 48, s. 330; 1984, c. 41, s. 67; 1988, c. 21, s. 66; 1990, c. 77, s. 56; 2009, c. 58, s. 136.

CHAPTER VII FINANCIAL PROVISIONS

1997, c. 36, s. 6.

330.1. (Repealed).

1997, c. 36, s. 6; 2002, c. 45, s. 684; 2004, c. 37, s. 90; 2008, c. 7, s. 168.

330.2. The costs incurred by the Government for the administration of this Act, as determined each year by the Government, shall be borne by the Authority.

1997, c. 36, s. 6; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

330.3. (Repealed).

1997, c. 36, s. 6; 2002, c. 45, s. 685; 2004, c. 37, s. 90; 2007, c. 15, s. 14.

330.4. (Repealed).

1997, c. 36, s. 6; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2007, c. 15, s. 14.

330.5. (Repealed).

1997, c. 36, s. 6; 2000, c. 29, s. 679; 2002, c. 45, s. 686; 2004, c. 37, s. 90; 2008, c. 7, s. 168.

330.6. (Repealed).

1997, c. 36, s. 6; 2002, c. 45, s. 696; 2004, c. 37, s. 36; 2008, c. 7, s. 168.

330.7. (Repealed).

1997, c. 36, s. 6; 2002, c. 45, s. 687.

330.8. (Repealed).

1997, c. 36, s. 6; 2002, c. 45, s. 687.

330.9. The costs incurred by the Authority for the purposes of Title III of the Act respecting the regulation of the financial sector (chapter E-6.1) in respect of an activity governed by this Act shall be borne by the recognized self-regulatory organizations that carry on such activities.

Such costs, established for each self-regulatory organization by the Authority at the end of its fiscal year, shall comprise a minimum contribution fixed by the Authority and the amount, if any, by which actual costs exceed the contribution. The actual costs shall be established on the basis of the rate schedule established by regulation.

The amount to be paid by each self-regulatory organization is set out in a certificate issued by the Authority.

1997, c. 36, s. 6; 2002, c. 45, s. 688; 2004, c. 37, s. 90; 2008, c. 24, s. 224; 2018, c. 23, s. 811.

330.10. The costs incurred by the Authority or, as the case may be, by a person specially designated by the Authority, for the purposes of section 30 of the Act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.) (chapter F‐3.2.1), sections 37 and 38 of the Act to establish Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l’emploi (chapter F‐3.1.2) and section 33 of the Act constituting Capital régional et coopératif Desjardins (chapter C‐6.1) shall be borne by those legal persons. The costs shall be determined annually by the Authority, on the basis of the actual costs; in the case of costs incurred by the Authority, the actual costs are established on the basis of the rate schedule established by regulation.

The certificate issued by the Authority establishing the amount to be paid by each legal person in respect of the costs incurred is peremptory.

1997, c. 36, s. 6; 2002, c. 45, s. 689; 2004, c. 37, s. 90.

TITLE XI REGULATIONS AND TRANSITIONAL AND FINAL PROVISIONS

CHAPTER I REGULATIONS

331. The Authority may, by regulation,

(1)  define the procedure to be followed in any matter relating to the application of this Act;

(1.1)  determine the conditions to be met by a company for the purposes of the definition of “closed company” set out in section 5;

(2)  (subparagraph repealed);

(3)  (subparagraph repealed);

(4)  (subparagraph repealed);

(5)  (subparagraph repealed);

(6)  establish the rescission rights and the commissions and other sales charges pertaining to a contractual plan for the acquisition of securities;

(6.1)  determine, for the purposes of section 151.1.1, the other market participants likely to be the subject of an inspection;

(7)  (subparagraph repealed);

(8)  (subparagraph repealed);

(9)  prescribe the fees payable for any formality provided for in this Act or the regulations and for services rendered by the Authority, and the terms and conditions of payment;

(10)   prescribe the fees payable by an investor for a securities transaction, and the procedure for collecting the fees and remitting them to the Authority;

(11)  establish the rates referred to in sections 212, 273.2, 330.9 and 330.10;

(11.1)  determine the provisions of Title II, Title III the contravention of which may be sanctioned by an monetary administrative penalty, and prescribe the amounts and conditions of such a penalty for the purposes of section 274.1;

(12)  define the terms and expressions used for the purposes of this Act or the regulations under this section.

A regulation made under this section shall be submitted to the Government for approval, with or without amendment.

The Government may make or amend a regulation under this section if the Authority does not do so within the time specified by the Government.

1982, c. 48, s. 331; 1984, c. 41, s. 68; 1987, c. 40, s. 29; 1990, c. 77, s. 57; 1992, c. 35, s. 16; 1997, c. 36, s. 7; 2001, c. 38, s. 91; 2002, c. 45, s. 690; 2004, c. 37, s. 37; 2006, c. 50, s. 107; 2009, c. 25, s. 44; 2009, c. 58, s. 137; 2016, c. 7, s. 167; 2018, c. 23, s. 809.

331.1. The Authority may, by regulation,

(1)  determine the form and content of the documents, declarations, statements and attestations required under this Act or the regulations;

(2)  determine, from among the documents referred to in this Act or a regulation made under this Act, those that must be filed or transmitted using the medium or technology it specifies in the regulation;

(3)  fix various time limits and periods in accordance with the provisions of this Act;

(3.1)  determine that a person is a non-redeemable investment fund or a mutual fund for the purposes of paragraph 2 of the definition of “non-redeemable investment fund” and paragraph 2 of the definition of “mutual fund” in section 5;

(4)  determine the portion of the securities of an issuer and establish the terms and conditions for the purposes of paragraph 9 of the definition of “distribution” in section 5;

(4.1)  determine conditions for transmitting and receiving documents referred to in this Act or a regulation made under this Act;

(5)  determine the cases and prescribe the information and attestations to which the second paragraph of section 12 and section 40.1 apply;

(6)  impose conditions or an undertaking for the issue by the Authority of a receipt in respect of a prospectus, and fix the conditions on which a security may be distributed by way of various types of prospectus;

(6.1)  determine conditions for amending a prospectus or a preliminary prospectus and for distributing additional securities through an amendment to a prospectus;

(6.1.1)  determine conditions relating to the right of rescission provided for in section 30;

(6.1.2)  provide for a right to cancel the subscription or purchase of securities during a distribution, and determine conditions relating to that right;

(6.2)  determine conditions relating to the duration or extension of a distribution;

(7)  establish the rules governing the designation of securities and the changes made to their characteristics;

(8)  prescribe the information concerning securities or securities transactions that must be transmitted to the Authority, self-regulatory organizations, security holders, investors, clients or the general public, and establish the management rules, including governance rules, to be complied with by a registrant in order to safeguard the interests of clients;

(9)  define accounting requirements for issuers, dealers, advisers, investment fund managers and self-regulatory organizations, and the requirements relating to the books, registers and other documents they must keep and to the preparation and audit of their financial statements;

(9.1)  determine the rules applicable to persons referred to in section 169 or 171, including rules concerning review or approval of their operating rules or restrictions relating to ownership of or control over such persons;

(9.2)  determine the criteria and conditions in accordance with which the Authority may designate a credit rating organization;

(9.2.1)  determine the criteria and conditions in accordance with which the Authority may designate a benchmark and the administrator of that benchmark;

(9.3)  determine the rules applicable to designated credit rating organizations or to designated benchmark administrators and to the disclosure of information to the Authority, the public, the person whose securities are being rated, or users of a designated benchmark;

(9.4)  prescribe requirements in respect of designated credit rating organizations, including requirements relating to the code of conduct, a prohibition to issue or maintain a credit rating, procedures regarding conflicts of interest between a designated credit rating organization and the person whose securities are being rated, the keeping of the books and registers necessary for the conduct of its business, and the appointment of a compliance officer and of its officers;

(9.5)  prescribe requirements in respect of a designated benchmark administrator or a person who provides information or data applied to establish a designated benchmark;

(9.6)  determine the rules applicable to designated benchmarks, which may vary according to the classes the Authority establishes;

(10)  confer on some of the rules or standards established by a self-regulatory organization or professional association, and any amendments made thereto, the force and effect of a regulation made under this Act;

(11)  exempt a category of persons, securities or transactions from some or all of the requirements of this Act or the regulations, with or without conditions;

(11.1)  define the expression “accredited investor” and determine the conditions for the distribution of securities made to an accredited investor for the purposes of section 43;

(12)  prohibit the use of advertising documents during a distribution;

(13)  define the cases in which the Authority may refuse to issue a receipt for a prospectus referred to in Title II;

(14)  establish special disclosure schemes for securities distributions based on the nature of the securities involved or the categories of issuers, fix the new conditions for the use of such schemes and prescribe the documents that may stand in lieu of a prospectus in the circumstances and on the other conditions determined by the Authority;

(15)  prohibit or impose conditions applicable to any operation designed to fix, stabilize or influence the quoted price of a security;

(16)  establish operating rules for the management, stewardship, safekeeping and composition of the assets of investment funds, in particular, governance rules and conflict of interest management rules, including rules applicable to a committee formed for those purposes, and prohibit certain transactions for the protection of the holders of securities;

(17)   prohibit or impose conditions applicable to securities transactions with and loans made to persons who are not entirely independent of an investment fund;

(18)  (paragraph repealed);

(18.1)  determine the issuers to which subparagraph 7 of the second paragraph of section 68 applies;

(18.2)  determine the criteria to be used by the Authority to designate an issuer as an issuer deemed to have made a distribution of securities to the public under subparagraph 8 of the second paragraph of section 68;

(18.3)  determine that a person is an insider for the purposes of subparagraph 5 of the first paragraph of section 89;

(19)  establish rules concerning the financial statements and auditor’s reports required under this Act or the regulations;

(19.1)  determine the rules applicable to an accountant’s audit of the affairs of any person subject to this Act, particularly the requirements that must be met by an accounting firm and the notices it must file with the Authority and the audit committee of such a person;

(19.2)  determine the rules applicable to a committee auditing the affairs of an issuer governed by this Act;

(19.3)  prescribe the obligations of reporting issuers and their signing officers with respect to information release controls and procedures and to internal control of financial information, in particular concerning the design, implementation and maintenance of such controls, the assessment of their effectiveness and the disclosure of assessment results, their documentation, the monitoring of their modifications, any fraud related to them, and audit of internal control assessment;

(19.4)  establish rules relating to attestations that reporting issuers and their signing officers must provide concerning the internal control of financial information and information release controls and procedures;

(19.5)  establish rules pertaining to reporting issuer governance;

(20)  determine continuous disclosure requirements for the purposes of sections 73 and 74;

(20.1)  determine the rules applicable to insiders for the purposes of Chapter IV of Title III;

(21)  determine the rules applicable to take-over bids for the purposes of Title IV;

(22)  determine disclosure requirements and impose prohibitions on securities transactions for the purposes of section 115;

(23)  (paragraph repealed);

(24)  prescribe measures to protect minority shareholders with respect to the transactions determined by the Authority that are carried out by issuers or other persons having access to the financial market and that are likely to give rise to situations of conflict of interest;

(25)  determine the conditions subject to which a person resident outside Québec may apply for registration or hold an interest in the capital of a registrant;

(26)  establish categories of registration, the conditions to be met by applicants, the duration of registration and the rules governing the activities of registrants;

(27)  determine, for the purposes of section 159, the changes that must be notified to the Authority and those for which approval must be obtained from the Authority;

(27.0.1)  determine the natural persons referred to in section 159.0.1;

(27.0.2)  determine the information and documents that must be disclosed under section 159.0.1;

(27.0.3)  determine the manner in which a commission is to be shared under section 160.1.1;

(27.0.4)  determine the policy that dealers and advisers must adopt under section 168.1.1, or elements of that policy.

(27.1)  (paragraph repealed);

(28)  establish the obligations incumbent on registrants, persons recognized under section 169 and self-regulatory organizations following a transaction in counterfeit, lost or stolen securities;

(29)  determine the cases and circumstances in which a dealer must participate in a contingency fund;

(30)  establish the rules and procedures that apply to the transmission of documents referred to in section 165;

(31)  (paragraph repealed);

(32)  establish the rules governing a listed market or an over-the-counter market;

(32.0.1)  make rules concerning securities offers and trades or other securities transactions, including for the purpose of promoting market efficiency and transparency or preventing fraud and manipulation;

(32.1)  prescribe the cases in which Division II of Chapter II of Title VIII applies to a person that has subscribed for or acquired a security in a distribution of securities made under a prospectus exemption or in a take-over bid or issuer bid, or that makes any other transaction determined by regulation;

(32.2)  determine documents other than those referred to in the definition of “core document” in section 225.3 to be core documents for the purposes of that definition;

(33)  establish a mechanism for consulting with an organization pursuing similar objects, concerning matters coming under the authority of this Act and of the legislation of the legislative authority having jurisdiction over such organization;

(33.1)  determine any Québec authority that may be delegated to an extra-provincial securities commission and any extra-provincial authority that may be exercised by the Authority in accordance with section 307, and the conditions for exercising such authorities;

(33.2)  determine the extent and conditions applicable to the order or decision made by the Authority, for the purposes of section 307.1;

(33.3)  incorporate by reference into Québec securities laws any or all provisions of extra-provincial securities laws, determine the cases in and conditions on which provisions of extra-provincial securities laws may be so incorporated for the purposes of section 308, and determine the conditions applicable to the order or decision made by the Authority, for the purposes of section 308.0.1;

(33.4)  determine the conditions on which the Authority, the Financial Markets Administrative Tribunal or a recognized self-regulatory organization may make a decision or order under a Québec authority on the basis of a decision made by an extra-provincial securities commission and the cases in which the decision may not be made without again giving the interested person an opportunity to be heard, for the purposes of section 308.0.3;

(33.5)  allow, in accordance with sections 308.1.1 to 308.2.1, an extra-provincial authority to be recognized in Québec in the areas specifically listed in the regulations, with respect to the persons or organizations subject to such authority;

(33.6)  determine the cases in and conditions on which a receipt is deemed, under paragraph 1 of section 308.2.1, to have been issued for the purposes of Québec securities laws, including when a receipt has been issued for a prospectus or an amendment to a prospectus under extra-provincial securities laws;

(33.6.1)  determine the cases in and conditions on which the status of an issuer or a category of issuer as a reporting issuer is deemed to be revoked for the purposes of Québec securities laws, including where that status is revoked under extra-provincial securities laws for the purposes of paragraph 1.1 of section 308.2.1;

(33.7)  determine the cases in and conditions on which a person or class of persons is deemed, under paragraphs 2 and 3 of section 308.2.1, to be recognized, designated or authorized to carry on an activity for the purposes of Québec securities laws, including when the person or class of persons is recognized, designated or authorized under extra-provincial securities laws;

(33.8)  determine the cases in and conditions on which an exemption from Québec securities laws is deemed, under paragraph 4 of section 308.2.1, to be granted by the Authority, including when an exemption has been granted under extra-provincial securities laws;

(33.9)  determine the circumstances in which an activity in respect of transactions in securities or in a particular security is deemed to be prohibited under paragraph 5 of section 308.2.1, including when an extra-provincial securities commission has imposed the same prohibition under a power similar to the Authority’s power under section 265;

(33.10)  prescribe that a person is a securities authority in Canada for the purposes of the definition of “securities authority in Canada” in section 308.2.1.1;

(34)  define the terms and expressions used for the purposes of this Act or the regulations under this section.

1997, c. 36, s. 8; 2001, c. 38, s. 92; 2002, c. 45, s. 691; 2004, c. 37, s. 38; 2006, c. 50, s. 108; 2007, c. 15, s. 15; 2006, c. 50, s. 108; 2008, c. 7, s. 170; 2006, c. 50, s. 108; 2008, c. 24, s. 225; 2009, c. 25, s. 115; 2009, c. 25, s. 45; 2009, c. 58, s. 138; 2006, c. 50, s. 108; 2011, c. 18, s. 83; 2011, c. 26, s. 84; 2009, c. 58, s. 138; 2013, c. 18, s. 117; 2016, c. 7, ss. 168 and 179; 2018, c. 23, s. 710; 2021, c. 15, s. 107.

331.2. Every regulation made under section 331.1 must be approved, with or without amendment, by the Minister.

The Minister may make a regulation under this section if the Authority does not do so within the time specified by the Minister.

A draft regulation shall be published in the Bulletin of the Authority, accompanied with the notice required under section 10 of the Regulations Act (chapter R‐18.1).

A draft regulation may not be submitted for approval or be made before 30 days have elapsed since its publication.

The regulation comes into force on the date of its publication in the Gazette officielle du Québec or on any later date specified in the regulation. It shall also be published in the Bulletin.

A draft regulation under Chapter II of Title X and paragraphs 33.1 to 33.9 of section 331.1 may be submitted for approval only if accompanied by a favourable notice from the Minister responsible for Canadian Intergovernmental Affairs. The same applies if such a draft regulation is made under the second paragraph

Sections 4 to 8, 11 and 17 to 19 of the Regulations Act do not apply to a regulation made under section 331.1.

2001, c. 38, s. 93; 2002, c. 45, s. 696; 2004, c. 37, s. 90; 2006, c. 50, s. 109.

332. The Government may, by regulation,

(1)  determine the other forms of investment subject to this Act;

(2)  determine the remunerated business to which section 149 applies;

(3)  (paragraph repealed).

1982, c. 48, s. 332; 2001, c. 38, s. 94; 2002, c. 45, s. 692; 2009, c. 25, s. 46; 2018, c. 23, s. 711.

333. In exercising their regulatory powers, the Government, the Minister or the Authority may establish various classes of persons, securities and transactions and prescribe appropriate rules for each class.

1982, c. 48, s. 333; 1997, c. 36, s. 9; 2001, c. 38, s. 95; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

334. A regulation made under this Act may confer a discretionary power on the Authority.

1982, c. 48, s. 334; 2002, c. 45, s. 693; 2004, c. 37, s. 90.

335. Draft regulations and regulations made under section 331 shall be published in the Bulletin of the Authority.

1982, c. 48, s. 335; 1982, c. 62, s. 143; 1984, c. 41, s. 69; 1997, c. 36, s. 10; 2001, c. 38, s. 96; 2002, c. 45, s. 696; 2004, c. 37, s. 90.

335.1. The Authority shall, not later than 31 July, submit to the Minister an annual report on its regulation activities under this Act for the period ending at the end of its last fiscal year.

The report must describe regulatory amendments and their impact on the securities market and on investors, and contain any other information required by the Minister.

2006, c. 50, s. 110.

335.2. The Minister shall table the report submitted under section 335.1 in the National Assembly within 30 days of its receipt or, if the Assembly is not sitting, within 30 days of resumption.

2006, c. 50, s. 110.

335.3. The competent parliamentary committee of the National Assembly may hear the Authority at least once a year to discuss the report submitted under section 335.1 and the Authority’s regulation activities.

2006, c. 50, s. 110.

CHAPTER II TRANSITIONAL AND FINAL PROVISIONS

336. (Omitted).

1982, c. 48, s. 336.

337. Every registration made and permission granted to distribute securities or a prospectus under the Securities Act (chapter V-1) continues to have full effect notwithstanding the replacement of the said Act by this Act.

The first paragraph also applies to other decisions rendered under the said Act.

Every proceeding for an offence against the Securities Act (chapter V-1) is brought or continued in accordance with the said Act.

1982, c. 48, s. 337.

338. For the application of section 68, every issuer is deemed to have made a distribution of its securities to the public

(1)  that was authorized by the Commission, at any time from 1 May 1955 to 19 January 1983, to make a distribution of securities under a prospectus filed with the Commission;

(2)  that has filed a securities exchange take-over bid circular with the Commission, at any time from 6 July 1973 to 19 January 1983.

1982, c. 48, s. 338; 2011, c. 26, s. 85.

338.1. In the case of distributions made before 6 April 1983 without observing the formalities prescribed by the Act applicable at the time of the transaction, the Authority may regularize the situation of the securities so distributed if it deems that the Authority would have issued a receipt for the prospectus if it had been submitted or would have granted a prospectus exemption if it had been applied for.

1984, c. 41, s. 70; 2004, c. 37, s. 39.

339. (Amendment integrated into section 3 of this Act).

1982, c. 48, s. 339.

340. (Amendment integrated into c. A-24, s. 19).

1982, c. 48, s. 340.

341. (Amendment integrated into c. I-3, s. 965.1).

1982, c. 48, s. 341.

342. (Amendment integrated into c. I-3, s. 965.2).

1982, c. 48, s. 342.

343. (Amendment integrated into c. I-3, s. 965.3).

1982, c. 48, s. 343.

344. (Amendment integrated into c. I-3, s. 965.6).

1982, c. 48, s. 344.

345. (Omitted).

1982, c. 48, s. 345.

346. (Amendment integrated into c. R-22, ss. 1, 2).

1982, c. 48, s. 346.

347. (Amendment integrated into c. S-24, s. 9).

1982, c. 48, s. 347.

348. The Minister of Finance is responsible for the application of this Act.

1982, c. 48, s. 348; 2002, c. 45, s. 695.

349. The appropriations voted for the application of the Securities Act (chapter V-1) are transferred to permit the application of this Act.

Supplementary appropriations for the application of this Act voted for the fiscal period 1982-1983 are taken out of the Consolidated Revenue Fund.

For subsequent periods, the moneys are taken out of the moneys granted annually by Parliament.

1982, c. 48, s. 349.

350. (Repealed).

1982, c. 48, s. 350; 1997, c. 36, s. 11.

351. (Repealed).

1982, c. 48, s. 351; 1984, c. 41, s. 71; 1989, c. 48, s. 256; 2002, c. 45, s. 694.

352. The Minister shall, on or before 19 January 1988, and every five years thereafter, make a report to the Government on the implementation of this Act and on the advisability of continuing it in force and, as the case may be, of amending it.

The report must be tabled in the National Assembly within the following 15 days if it is sitting or, if it is not, within 15 days of resumption.

Within one year after the report is tabled, the competent committee of the National Assembly shall examine the advisability of maintaining this Act in force or amending it, and shall hear submissions by interested persons and bodies.

1982, c. 48, s. 352; 1982, c. 62, s. 143; 2009, c. 25, s. 47.

353. (This section ceased to have effect on 19 January 1988).

1982, c. 48, s. 353; U. K., 1982, c. 11, Sch. B, Part I, s. 33.

354. (Omitted).

1982, c. 48, s. 354.

REPEAL SCHEDULES

In accordance with section 17 of the Act respecting the consolidation of the statutes and regulations (chapter R-3), chapter 48 of the statutes of 1982, in force on 1 July 1983, is repealed, except the second paragraph of section 336 and section 354, effective from the coming into force of chapter V-1.1 of the Revised Statutes.

In accordance with section 17 of the Act respecting the consolidation of the statutes and regulations (chapter R-3), section 339 of chapter 48 of the statutes of 1982, in force on 1 January 1984, is repealed effective from the coming into force of the updating to 1 January 1984 of chapter V-1.1 of the Revised Statutes.