Bill 3: An Act to Amend the Securities Act

This bill most directly affects businesses in New Brunswick that are active in financial services and capital markets — including investment dealers, mutual fund companies (now called 'management companies'), portfolio managers, and anyone who promotes or trades securities or derivatives. If you run a small investment advisory firm or work as a registrant, you now face a new administrative penalty system with fines up to $10,000 for individuals and $25,000 for other entities for regulatory breaches, issued without going through a full tribunal hearing. Businesses that market or promote securities — even on behalf of a reporting issuer — are now classified as 'market participants' and subject to new restrictions on promotional activities. Firms that have retail investor clients may also find themselves subject to a new recognized dispute resolution service, which can award compensation of up to $350,000 for financial losses and $5,000 for non-financial losses arising from complaints.