Regulation - LGIC

Amendments to Section 163 of Ontario Regulation 1015 of the Securities Act

Regulation Number(s):
1015
Instrument Type:
Regulation - LGIC
Bill or Act:
Securities Act
Summary of Proposal:
The Ministry of Finance is proposing to revoke section 163 of Ontario Regulation 1015 of the Securities Act that requires the Ontario Securities Commission (OSC) to deliver investigation summonses directly to an individual or business, known as the personal service requirement. Additionally, the Ministry of Finance is proposing amendments to section 163 to broaden the OSC's methods for delivering summonses to individuals and companies, in addition to personal service.

The proposed amendments to Ontario Regulation 1015 are required to broaden the methods for serving summonses to recipients for the purpose of OSC investigations. The comments received during the consultation will be considered during the preparation of any final amendments.

The amendments would set out different methods of serving summonses to individuals and companies, if receipt is acknowledged. Further, the amendments would specify when the service of a summons is considered effective as well as the prescribed forms to be used for serving a summons.

The amendments would provide flexibility in serving summonses to individuals and companies and reduce delays in serving summonses.

The OSC anticipates that broadening the methods for serving summonses would improve the efficiency of investigations.

Technical Amendments to Regulation 1015
The Ministry of Finance also proposes to make select technical amendments to Regulation 1015 for greater clarity.

Analysis of Regulatory Impact:
These amendments would provide greater operational flexibility to the OSC in the serving of summonses and would improve the efficiency of their investigations. During the Capital Markets Modernization Taskforce consultations in 2020, stakeholders expressed support for the Taskforce's recommendation to broaden the service provisions of summonses under the Securities Act.

The current operational costs and time associated with executing the personal service of summonses will be reduced as the OSC will have broader, more-cost effective means to serve summonses. In turn, individuals and companies being served will benefit from the discretion afforded by these alternate means of service.

Technical Amendments to Regulation 1015
The technical amendments would remove redundant provisions in Regulation 1015 and reduce any confusion that outdated information may cause for stakeholder.

Further Information:
Proposal Number:
24-MOF019
Posting Date:
September 3, 2024
Comments Due Date:
October 18, 2024
Contact Address:
Ontario Ministry of Finance
95 Grosvenor Street, 4th floor
Toronto, Ontario
M7A 1Y7