National Instruments

Denis Grigoras

Denis is a lawyer who draws on his background in complex legal disputes and transactions to problem-solve for his clients.

The National Instruments are a comprehensive set of rules and regulations that apply to the securities industry in Canada. They are issued by the Canadian Securities Administrators, an umbrella body representing each province and territory’s securities regulators. The National Instruments are intended to strengthen investor protection and promote efficient capital markets.

Share Post:

National Instruments

The National Instruments are a comprehensive set of rules and regulations that apply to the securities industry in Canada. They are issued by the Canadian Securities Administrators (CSA), an umbrella body representing each province and territory’s securities regulators. The National Instruments are intended to strengthen investor protection and promote efficient capital markets.

The National Instruments encompass a vast array of topics, such as the registration and regulation of market participants, the disclosure of information by issuers, the trading of securities, and the oversight of market activity. The following are examples of National Instruments:

National Instrument 31-103 Registration Requirements, Exemptions, and Ongoing Registrant Obligations: This instrument sets out the registration requirements and exemptions for market participants, including investment dealers, advisers, and mutual fund dealers. In addition, it imposes ongoing obligations on registered firms, such as the duty to maintain specific documents and adhere to specific conduct standards. This instrument’s registration requirements are designed to ensure that market participants are qualified and competent to engage in their activities, and that they have the required systems, controls, and processes in place to protect investors. The exemptions from the registration requirement, on the other hand, are intended to facilitate access to the capital markets for certain categories of market participants, such as start-up companies and closely held issuers.

National Instrument 45-106 Prospectus and Registration Exemptions: This instrument sets out the exemptions from the prospectus requirement and the registration requirement for the distribution of securities. It streamlines the capital-raising process for businesses by exempting them from the Act’s full regulatory obligations. The purpose of the Act’s prospectus requirement is to ensure that investors obtain full and complete information about the securities being offered, including risks, rewards, and other material facts. The exemptions from the prospectus requirement are intended to allow companies to raise money more efficiently and cost-effectively, provided that the exemptions are applied appropriately and investor risks are reduced. The exemption from registration, on the other hand, is intended to provide companies access to the capital markets without having to comply with the Act’s complete registration requirements.

National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings: This instrument requires issuers to attest that their financial statements and accompanying disclosure documents are accurate and complete. It aims to improve the quality and reliability of issuers’ financial disclosure. The certification requirement is designed to hold issuers accountable for the accuracy and completeness of the information that they provide to investors. It requires the issuer’s chief executive officer and chief financial officer to personally certify to the financial statements’ accuracy and completeness. In addition, the issuer’s auditor is required to give an opinion on the issuer’s financial statements in order to provide investors with independent assurance that the financial statements have been presented accurately and in line with generally accepted accounting principles.

National Instrument 23-103 Electronic Trading and Order Handling: This instrument regulates the use of electronic trading systems and the handling of orders by market participants. It aims to foster fair and orderly markets and safeguard investors. The electronic trading provisions of this instrument are intended to ensure that electronic trading systems are managed fairly, transparently, and efficiently, and are subject to the appropriate controls and safeguards. The order handling features of this instrument are intended to guarantee that orders are handled fairly and in the investors’ best interests.

The CSA routinely reviews and revises the National Instruments in order to stay up with advances in the securities sector and adapt to shifting market conditions. Participants in the market are expected to be conversant with the National Instruments applicable to their activity and to ensure compliance with the pertinent regulations. The CSA may take enforcement action, such as fines, sanctions, and other penalties, for noncompliance with the National Instruments.

In addition to the National Instruments, the CSA also publishes guidance documents, staff notices, and other publications that give further information and interpretation on the National Instruments’ application. The purpose of these materials is to help market players in comprehending their obligations under the National Instruments and to promote compliance with the regulatory framework.

The CSA is also authorized to conduct reviews and investigations in order to enforce the regulatory framework and monitor compliance with the National Instruments. This includes the authority to compel market participants to disclose information and documents, to attend hearings, and to be examined under oath. In addition to administrative penalties such as fines and sanctions, the CSA can also refer matters to the courts for additional action.

The National Instruments are a comprehensive set of laws and regulations applicable to the Canadian securities industry. The CSA routinely reviews and revises them to ensure that they continue to promote fair and efficient capital markets and increase investor protection. Participants in the market are expected to be conversant with the National Instruments applicable to their activity and to ensure compliance with the pertinent regulations. In order to enforce the regulatory framework, the CSA has the jurisdiction to undertake evaluations and investigations, as well as apply administrative fines for noncompliance with the National Instruments.

Stay Connected

More Posts

False Light

Shedding Light on the False Light Tort

In 2019, Ontario recognized “publicity which places an individual in a false light” – the “false light tort” – as a part of the common law. Despite its relatively straightforward definition, the false light tort remains puzzling due to its ambiguous parameters, unique elements, and potential utility.

Read More »
Canadian Taxation for Athletes

Extra Points: The Game of Canadian Taxation for Athletes

How does Canadian tax law impact professional athletes? To understand this, we need to think about multiple scenarios, and consider the athlete’s residency, their affiliations with Canadian or foreign-based teams, and the ever-changing political landscape surrounding the taxation of sports franchises in Canada.

Read More »
Airline Baggage and Cargo Liability

When Bags Fly: Airline Baggage and Cargo Liability

When your cargo or luggage gets damaged or lost during international air transport, you might think that the airline will compensate you for your losses. However, the legal landscape surrounding airline liability for international cargo and baggage is complex. It’s governed by international conventions like the Warsaw Convention and the Montreal Convention, which establish specific rules and liability limits for airlines.

Read More »
Business Judgment Rule

The Business Judgment Rule: A Director’s Guide to Risky Business

The business judgment rule has its roots firmly planted in the need to facilitate an environment of innovation and growth in business. Recognizing that running a business often involves taking risks, this rule has been developed to shield directors and officers who are willing to take calculated chances to propel a corporation forward.

Read More »
Civil Fraud

Civil Fraud: The Wolf in Sheep’s Clothing

Civil fraud, also known as deceit, is a serious economic tort or civil wrong that involves a deliberate deception through false representation. It requires four elements: a false representation by the defendant, their knowledge (or recklessness) of the falsehood, the plaintiff’s action influenced by this representation, and a loss suffered by the plaintiff as a result.

Read More »
Nevada's Court System

Silver State Justice: A Closer Look at Nevada’s Court System

The judicial system in Nevada plays a critical role in upholding the rule of law and ensuring the fair administration of justice. The courts covered include Municipal Courts, Justice Courts, Small Claims Court, District Courts, Family Courts, and Appellate Courts, comprising the Supreme Court and the Court of Appeals.

Read More »
Insider Trading

Insider Intel: Navigating the Gray Areas of Insider Trading

An “insider” is broadly defined, including the corporation, directors, officers, major shareholders, employees, and professionals like lawyers or accountants. Liability extends to those receiving confidential information from insiders (tippees). Insiders cannot tip others for trading advantages. If an insider tips an unrelated person, they are liable for damages and accountable to the corporation for benefits received.

Read More »
Will Large Language Models Like ChatGPT Replace Legal Professionals

Will Large Language Models Like ChatGPT Replace Legal Professionals?

In recent months, the rise of advanced artificial intelligence and natural language processing technologies, such as Large Language Models (LLMs) like ChatGPT, has sparked a debate about their potential impact on various industries, including the legal profession. The million-dollar question inevitably arises: Will LLMs replace lawyers (and perhaps judges also), or at the very least, lead to a massive paradigm shift in law practice?

Read More »
Apologies and Retractions

Sorry, Not Sorry: Apologies & Retractions in Defamation Law

In defamation cases, an apology may play a crucial role in the assessment of damages. However, it is important to note that courts lack the jurisdiction to order defendants to apologize. The existence of an apology, the sincerity of the defendant, and the extent of the publicity given to the apology are factors that courts consider when determining damages.

Read More »
Lowest Intermediate Balance Rule

Tracing Commingled Funds: Unraveling the LIBR Mystery

The Lowest Intermediate Balance Rule (“LIBR“) is an essential concept in the legal world, particularly in cases involving the tracing of funds. It is an evidential rule that assumes that when a person commingles their own funds with funds belonging to someone else, they are assumed to have spent their own funds first.

Read More »
Suing a City

Suing a City: Abuse of Power Lawsuits

Yes, believe it or not, you can sue a city. Municipal corporations, which include cities, are no longer immune to liability as they were in the past. They can be held accountable for various wrongdoings, such as tortious acts, breaches of contract, and neglecting statutory duties.

Read More »
Rylands v. Fletcher

Taming the Tort: The Lasting Impact of Rylands v. Fletcher

Rylands v. Fletcher is a landmark case in English tort law that established the principle of strict liability for certain harmful activities. The rule states that a person who uses their land for non-natural purposes and accumulates a potentially dangerous substance on their property may be held strictly liable if that substance escapes and causes damage to another’s property.

Read More »
Notice Requirements Defamation

The Fine Print: Notice Requirements in Ontario Defamation Law

In Ontario, special notice requirements apply to defamation cases involving libel in a newspaper printed and published in the province or a broadcast from a station within Ontario. Plaintiffs must provide written notice to the defendant within six weeks after becoming aware of the alleged libel.

Read More »
Conversion

The Battle for Chattel: Understanding the Tort of Conversion

The tort of conversion primarily deals with the unlawful interference of another person’s movable personal property, known as chattels. In contrast to trespass to goods, conversion demands more than just a simple invasion of the plaintiff’s possessory rights; it necessitates an interference that denies the plaintiff’s title.

Read More »

The Principal Residence Exemption

The term “principal residence” refers to a taxpayer’s primary dwelling or housing unit for a specific tax year. The taxpayer, their spouse, common-law partner, former spouse, or child must ordinarily inhabit the residence. A personal trust can also claim a principal residence if it is regularly occupied by a specified beneficiary or their immediate family.

Read More »
Intimidation

From Threats to Torts: The Law on Intimidation

The tort of intimidation, a relatively less explored area of common law, has been recognized and established through a series of judicial decisions. The House of Lords in Rookes v. Barnard (“Rookes“) formally acknowledged the existence of this tort, which has since been accepted as part of the common law in Canada.

Read More »
Spousal Support

Understanding Spousal Support: Key Elements

In family law, spousal support is central to helping spouses who have become financially disadvantaged due to the breakdown of a marriage or common-law relationship. This post examines the legal principles and case law surrounding spousal support, discussing child support priority, general principles, and various factors that influence support amounts and duration.

Read More »
Shareholder Loans

Navigating the Tax Maze: How Shareholder Loans Impact Your Taxes

According to Section 15(2) of the Income Tax Act, a shareholder (or a person or partnership connected to the shareholder) may be deemed to have received a taxable benefit equal to the amount of a loan or debt made by a corporation. This taxable benefit is included in the shareholder’s income for the tax year in which the loan or debt arose.

Read More »
Are Internet Communications Broadcasts

Digital Dilemmas: Are Internet Communications Considered Broadcasts in Canadian Defamation Law?

Over time, Canadian provincial legislation regulating defamation has been updated to incorporate modern communication methods. However, since most of this legislation does not explicitly address the Internet, judges are often required to draw parallels between Internet communications and traditional media forms, such as newspapers and broadcasts, that are covered by the legislation.

Read More »
I Was Sued

I Was Sued – Now What? (A Step-by-Step Guide)

Litigation is a complex process that requires careful attention to detail and a thorough understanding of the rules and procedures that govern the legal system. In this blog post, we explore the various stages of a lawsuit in Ontario, from the initial pleadings to the final trial.

Read More »
Class Action Certification

All for One, and One for All: A Blueprint for Success in Class Action Certification in Canada

In the Canadian legal landscape, class actions represent a powerful mechanism for individuals who have suffered similar harm or losses to collectively seek legal redress against a common defendant. These lawsuits serve multiple purposes, such as providing access to justice for people who might not have the means to pursue individual litigation, encouraging behavioural modification in large corporations or organizations, and promoting judicial efficiency by consolidating numerous related cases into a single legal action.

Read More »
Creating a Shareholders' Agreement

Share the Love, Not the Drama: A Guide to Creating an Effective Shareholders’ Agreement

An essential contract for small non-offering corporations, shareholders’ agreements define the rights, privileges, liabilities, and responsibilities of each shareholder. These agreements, also known as “unanimous shareholders’ agreements,” offer a framework to govern various aspects of a corporation’s functioning, such as delineating shareholder roles, placing limitations on certain actions, and regulating share transfers.

Read More »
Insurance Policies for Business Owners

Smart Insurance Choices: 8 Must-Have Policies for Ontario Business Owners

Running a successful business in Ontario requires dedication, hard work, and a thorough understanding of the various types of insurance available to protect your company’s assets and interests. In this overview, we will explore the ins and outs of the eight different insurance options available to Ontario-based businesses, helping you make informed decisions about the coverage your business needs to thrive.

Read More »
Passing Off

The Blurred Lines of Business: Tackling the Tort of Passing Off

The tort of passing off in Canadian law is founded upon the notion that no individual should be allowed to represent their products or services as those of another. The Supreme Court of Canada has set forth three key elements that a plaintiff must establish to succeed in a passing off action: goodwill, misrepresentation, and damage.

Read More »
Discontinue an Action

When Can You Discontinue an Action in Ontario?

When a plaintiff wants to discontinue an action against a defendant before the close of pleadings in Ontario, they have the right to do so by serving a Notice of Discontinuance on all parties served with a statement of claim and filing the notice with proof of service in the registrar’s office.

Read More »
The Proper Law of Contract

The Proper Law of a Contract: Two-Stage Inquiry Explained

The “proper law” of a contract generally governs most issues pertaining to its validity, interpretation, performance, and breach in the context of the Anglo-Canadian conflict of laws. The “proper law” rule is based on the principle that parties to a contract are free to choose the governing law.

Read More »
PIPEDA Demystified

PIPEDA Demystified: A Simple Overview of Data Privacy for Businesses and Individuals

In Canada, the Personal Information Protection and Electronic Documents Act (the “PIPEDA”) is a federal law regulating the collection, use, and disclosure of personal information by private organizations during commercial activities. The PIPEDA is key legislation that aims to safeguard the privacy of individuals by setting out clear rules for the management of personal information by private organizations.

Read More »
Promissory Estoppel

Promissory Estoppel: The Exception to Consideration in Contract Law

Promissory estoppel is a legal doctrine that may be used to prevent a party from reneging on a promise or representation they have made. It is a principle of equity that can be invoked to prevent a party from relying on their strict legal rights where it would be unfair or unjust to do so. Although originally developed by the common law, it has been modified over time by equitable principles.

Read More »
Dirty Money in the Gambling Industry - Canadian Regulations

The Fight Against Dirty Money in the Gambling Industry: An Overview of Canadian Regulations

The gambling industry is a prime target for those seeking to launder illegal funds. This includes physical casinos, online casinos, bars with poker machines, and both physical and online sports betting services. The global gambling industry generated record-breaking revenues in 2021, reaching $261 billion (USD) in the US and €87.2 billion (EUR) in Europe, making it an attractive option for criminals seeking to launder money. Relative to population size, Canada’s gambling industry made a proportional $2.64 billion (CAD) in revenue in 2021.

Read More »
Affidavits in the Legal System

Making a Statement: The Role of Affidavits in the Legal System

An affidavit is a document used in legal proceedings that comprises a witness’s statement of facts or opinion. The witness attests to the document, and the affidavit is taken by an authorized individual. This individual, known as the commissioner, confirms the witness’s identity and delivers the oath or affirmation that the document’s contents are accurate. The witness, not the commissioner, is responsible for determining the statement’s truth.

Read More »
Voiding a Contract

Voiding a Contract: Understanding the Different Options

A contract is a legally binding agreement between two or more parties that outlines their respective rights and obligations. But what happens if one of the parties wants to get out of the contract? In some cases, a contract can be voided, which means that it is deemed to have never existed legally.

Read More »
The Power of Reliance

The Power of Reliance: Making Promises Stick

In the realm of law, promises play an essential role, particularly regarding the protection of reliance. This post will be about the protection of reasonable reliance on statements made by a party to a contract or a potential contract. In a contract, the preservation of one party’s reliance may be equally as significant as the protection of both parties’ reasonable expectations.

Read More »
Mortgage Default

What to Expect When You Default on a Mortgage

When a default occurs, the mortgagee, or lender, has the right to accelerate the mortgage payment or seek specific performance or damages. They can also sell the property to repay their debt. If the sale proceeds are less than the mortgage debt, the mortgagee can sue the borrower for the deficiency. If the sale results in a surplus, the mortgagee must pass it on to the next encumbrancer or the borrower.

Read More »
Letters of Credit

The Self-Contained World of Letters of Credit

Letters of credit (LC) and bank guarantees are financial tools used to secure payment obligations. However, they differ from regular guarantees in terms of the defences against payment demands. An LC is simply an agreement to pay under certain conditions, and the law governing LCs is determined by the national jurisdiction where the LC is issued.

Read More »
Rule 21

Rule 21: The Road to a Speedy Resolution of Legal Proceedings

Rule 21 of Ontario’s Rules of Civil Procedure is a mechanism for dealing with situations where a claim brought by a plaintiff is clearly of a kind for which no legal relief is available or where the defence submitted by the defendant is not valid. The rule allows for the determination of certain preliminary issues that may dispose of a legal proceeding without the need for a trial to avoid delays and ensure that issues are disposed of promptly and in accordance with the Rules.

Read More »
Director Liability - Voting for and Consenting to Resolutions

The OBCA’s Director Liabilities: The Risks of Consenting to and Voting for Certain Resolutions

In Ontario, under the Ontario Business Corporations Act, directors of a corporation have a legal responsibility to ensure that the corporation is financially stable before making certain transactions. This includes the payment of dividends, redemption or reacquisition of shares, reduction of stated capital, or provision of financial assistance to certain non-arm’s length persons.

Read More »
Cryptocurrency and Insolvency

The Conundrum of Cryptocurrency: How Canadian Law Classifies Digital Assets in Insolvency

The question of how cryptocurrencies are classified under Canadian bankruptcy law has again been brought to the forefront with the collapse of Bahamas-based cryptocurrency exchange FTX . . . While there is broad acceptance that cryptocurrencies are likely assets, there is no widespread agreement on how to classify them – are they financial assets, intangible assets, inventory, investment property or something else?

Read More »
Rent Obligations During Receivership

Navigating Rent Obligations in Receivership Proceedings

When it comes to court-appointed receiverships, there can be much confusion surrounding the issue of rent obligations. Essentially, the main tension arises from the fact that existing legal principles don’t always align with what a receiver would like to do in practice.

Read More »
Ontario's Consumer Protection Act

Consumer 101: An Introductory Overview of the Consumer Protection Act, 2002 in the Province of Ontario

The Consumer Protection Act, 2002 (“CPA”) is a piece of legislation in Ontario that was put in place to safeguard customers’ interests in their interactions with various commercial enterprises. If a consumer’s rights are infringed upon, it details the legal recourses available to them as well as the rights and responsibilities of both businesses and customers.

Read More »