Canadian laws are in place to maintain the integrity of the markets and prevent misconduct. Though complex and difficult, Ontario has enacted laws to protect the investing public, ensure efficient operation of the capital markets and increase and maintain public confidence in the markets.
If you are considering acquiring or selling a business, one of the most important decisions you make will involve hiring a trusted advisor that will enable you to maximize value and realize your corporate and personal goals. To protect yourself and your business, it is important that you consider the various laws that regulate trades in business as requirements throughout Canada are numerous, varied and complex.
Trading and advising activities are regulated through Ontario’s securities laws and instruments, including National Instrument 31-103 ─ Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) and its companion policy, which uses a business trigger assessment to determine if an individual or firm must register under Canadian securities laws when undertaking trading or advising activities.
What may come as a surprise to businesses that are considering acquiring or selling a business is that advisors are also regulated by the Real Estate and Business Brokers Act, which regulates the trade in real estate and businesses. The Real Estate and Business Brokers Act casts a wide net (arguably too wide) on advisors through the definition of real estate, which includes businesses.
Accordingly, the Real Estate and Business Brokers Act allows a limited group to legally engage in the trade in real estate and businesses, including a person registered as a broker or salesperson under the Real Estate and Business Brokers Act, a person registered under the Securities Act and a solicitor of the Superior Court of Justice.
The sale or acquisition of a business may be one of the most important decisions you make. Consequently, you will want to ensure that you are protected and working with a trusted advisor to maximize value and realize your corporate and personal goals.
The Jaswal Institute is a Toronto-based business law firm that provides exceptional legal services and a full range of related investment banking advisory services to small- and mid-market private companies.
The Jaswal Institute is fully compliant with Ontario’s securities laws and instruments, including National Instrument 31-103 ─ Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) and its companion policy.
The Jaswal Institute is fully compliant with Ontario Laws, including the Real Estate and Business Brokers Act, which regulates the trade in real estate and businesses.
Authored by Johnny Jaswal, Managing Director of the Jaswal Institute. If you require further information with respect to the sale or acquisition of a business, please contact Johnny Jaswal.