Capital Markets Act - Consultation Draft

Regulation Number(s):
Not applicable
Instrument Type:
Bill or Act:
Capital Markets Act
Summary of Proposal:
In the 2021 Ontario Budget, the Ontario government announced that it would publish the draft CMA for stakeholder consultation. The CMA will not become law unless a bill is passed by the Legislative Assembly of Ontario in the future. Should the decision be made to introduce a bill in the Legislative Assembly, the comments received during consultation will be considered during the preparation of the bill. The content, structure, form and wording of the consultation draft are subject to change following the consultation process.

The CMA is new draft legislation intended to replace the Securities Act and the Commodity Futures Act in Ontario, if it comes into force.

The CMA would set out the regulatory framework for capital markets participants, outline the Ontario Securities Commission's regulatory and enforcement powers, including the authority to make rules, and provide for the Capital Markets Tribunal's adjudicative powers. The CMA would modernize Ontario's current capital markets legislation, retaining key components while introducing new elements to promote flexibility within a modern regulatory framework. More details are provided in the attached commentary.

This posting includes:
• A legislative draft of the CMA
• A policy commentary that covers the following: the framework and structure of the draft CMA; the major changes from the current framework in Ontario in the Securities Act and the Commodity Futures Act; consultation questions
• A table of concordance

Analysis of Regulatory Impact:
The Ministry of Finance has outlined some anticipated benefits and costs of implementing the draft CMA in the commentary and is seeking input on potential costs and benefits. It should be noted that the draft CMA incorporates many of the existing provisions in the Securities Act and the Commodity Futures Act, which is expected to limit the long term impact of transition on market participants and their businesses.

There may be transition implications as a result of compliance with new legislative requirements. The OSC and the government would ensure that stakeholders have the opportunity to familiarize and adapt to any changes resulting from the CMA and corresponding rules.
Further Information:
Proposal Number:
Posting Date:
October 12, 2021
Comments Due Date:
February 18, 2022
Contact Address:
Capital Markets Act Consultation
Capital Markets and Agency Transformation Branch
Ministry of Finance
Frost Building North
95 Grosvenor Street, 4th Floor, Toronto, ON M7A 1Z1