Securities Commission Approves New Investment Rules

N.S. SECURITIES COMMISSION--Securities Commission Approves New Investment Rules

Investors have additional protections because of changes to rules used by the Nova Scotia Securities Commission.

"The new rules will improve investor confidence in our securities regulation system," said Kerry Morash, Minister responsible for the Securities Act. "They'll also help maintain the flow of capital into our province by making our system consistent with most other jurisdictions in North America."

Four new rules relate to the accounting and audit procedures used to support financial information that's released by companies in which the public invests. "These rules will be standard across Canada," said Mr. Morash, "and they're consistent with those used by securities regulators in the United States."

Securities regulators across North America are adopting more stringent accounting and audit rules as a result of the collapse of Enron in 2001. The United States passed new financial reporting laws as a result.

"The Sarbanes-Oxley Act has caused substantial change in securities regulation across North America," said Nick Pittas, director of the Nova Scotia Securities Commission. "The rules we're adopting track these changes and tell the investment community that our reporting requirements are the same as everyone else's."

The commission has also adopted new rules regarding continuous disclosure. "These rules specify how issuers -- the people who want to raise money from investors -- report their financial information. We're replacing the patchwork of disclosure requirements that used to be in place with a standard system that all provinces use," Mr. Pittas said.

The new rules will come into effect at the end of this month.