On October 12, 2021, the Ontario government released a draft of the Capital Markets Act (the "The Draft CMA") for stakeholders’ consultation.

This release follows the recommendation of the Capital Markets Modernizing Taskforce made in its first consultation report, read our summary here.

The purposes of the Draft CMA are:

• To provide protection to investors from unfair, improper or fraudulent practices;

• To foster fair, efficient and competitive capital markets and confidence in capital markets;

• To foster capital formation;

• To contribute to the stability and integrity of the financial system and to the reduction of systemic risk.

The Draft CMA includes, amongst others, requirements applicable to:

• Recognized entities

• Designated of entities and other marketplaces

• Registration

• Distribution of securities

• Trading of derivatives

• Reporting issuers – disclosure and governance obligations

• Market conduct

• Ontario Securities Commission's regulatory and enforcement powers, including the authority to make rules, and provide for the Capital Markets Tribunal's adjudicative powers.

If it becomes law, the Draft CMA would likely replace the Ontario’s Securities Act and the Commodity Futures Act.

Comments are by email and by January 21, 2022.