The Government of Alberta has enacted amendments to the Securities Act, aimed at protecting investors and supporting the integrity of Alberta's capital markets. Developed with input from the Alberta Securities Commission (ASC), the amendments impose penalties for spreading financial misinformation and give authority to the ASC to halt trading of a stock for up to 15 days to protect investors. The amendments to the Securities Act, which were part of the broader Financial Statutes Amendment Act, 2025 (No. 2), received Royal Assent on December 11, 2025.
ASC Granted Broader Discretion in Preventing Financial Misinformation
A key amendment expands the definition of "forward-looking information" in the Securities Act to include disclosure involving future-oriented statements that may be prescribed by regulation. This amendment gives the ASC discretion to penalize misinformation that could harm investors or negatively impact the stock market. With many Albertans relying on social media for financial information, the ASC now has clearer authority to respond to false or misleading promotional activity, such as from online "finfluencers".
New Power to Halt Trade of a Stock
The Securities Act amendments also give the ASC the authority to halt trading of a listed issuer's stock for up to 15 days. Specifically, the ASC may now halt trading if it considers that there is inadequate, inaccurate, or misleading information about an issuer being disseminated that could potentially harm investors. This provision is designed to give the ASC flexibility to act quickly when misinformation or incomplete disclosure enters the market. While this authority is relatively novel in Canada, it is expected that other provinces will adopt a similar measure.
Potential Implications for Reporting Issuers
Although the amendments aim to protect investors from online misinformation, the broadened definition of forward-looking statements may still have meaningful consequences for reporting issuers. Because prospectuses and continuous disclosure documents frequently include future-oriented statements, issuers should continue to exercise care in drafting and supporting these disclosures.
If you have any questions regarding the amendments, please contact a member of the Bennett Jones Capital Markets group.
