Revisions to Quebec's financial sector regulations aligning with financial regulations in other Canadian regions
In a significant move to modernize its financial sector, Quebec enacted the Act to amend various provisions mainly in the financial sector on June 4, 2025. This comprehensive reform aims to update and harmonize Quebec's financial laws with those of other Canadian jurisdictions.
One of the key changes introduced by the Act is the introduction of the concept of "trading platforms" within the financial regulatory framework. This update aims to accommodate new digital and electronic trading methods in securities and financial products, reflecting the evolving landscape of the financial industry.
The Act also includes amendments to the Securities Act (SA). These adjustments address system fees, registration, and regulatory requirements for securities market participants. Notably, there are increases in system fees for national filing systems (e.g., SEDAR+ and NRD) to ensure sustainable funding of operations over a five-year period starting November 28, 2025. This harmonizes with national securities regulations.
The Act respecting the regulation of the financial sector (ARFS) has also seen changes to accommodate evolving financial system structures and promote competition. For example, measures that help smaller banks compete on a more balanced playing field through changes in pricing structures for financial transactions have been supported in the broader regulatory context.
Another significant change brought about by the Act is the lifting of professional secrecy for engineers and geologists in the context of mining projects. This move facilitates transparency and regulatory oversight in these projects, allowing relevant parties and authorities better access to critical technical information related to mining activities.
The Act also amends the ARFS to extend the lifting of professional secrecy to engineers and geologists in the context of investigations into mining projects. This amendment is expected to improve transparency and accountability in the mining sector.
The legislative amendments presented in this bulletin came into force on June 4, 2025, except for those on the creation of the Insurance Chamber, which came into force on July 4, 2025. The Insurance Chamber, constituted under Part III of the Act respecting companies, is a self-regulatory body that merges the Financial Services Chamber and the Damage Insurance Chamber. The AMF is deemed to have granted the necessary recognition for it to act as a self-regulatory organization.
The Act also extends the prohibitions on the use of privileged information to persons located in Quebec who have privileged information relating to any issuer subject to a securities regime of a Canadian province or territory. This amendment aims to enhance market integrity and fairness.
The creation of the Insurance Chamber is part of an effort to harmonize Quebec's financial sector laws with those of other Canadian jurisdictions. The Canadian Securities Administrators (the CSA) intend to act in concert to develop the legal framework applicable to trading platforms.
It is important to note that the Act does not provide a definition of the "trading platform" concept, allowing for its potential expansion and the extension of the obligation to register with the AMF. The Insurance Chamber, constituted under Part III of the Act respecting companies, may have its recognition withdrawn, modified, or replaced by the AMF as needed.
The Act subjects entities offering securities trading services, particularly around crypto-assets, to the SA regime even if they do not qualify as exchanges. This amendment aims to ensure that all entities involved in securities trading activities are subject to appropriate regulatory oversight.
These changes collectively aim to modernize Quebec’s financial sector regulation, improve transparency, and enhance competitive balance, particularly in light of technological development and evolving market practices. The reform extends the prohibitions on the use of privileged information, lifts professional secrecy for engineers and geologists in the context of mining projects, introduces the concept of "trading platforms", and creates the Insurance Chamber to promote harmonization with other Canadian jurisdictions.
[1] Act to amend various provisions mainly in the financial sector
[2] Quebec's financial sector reform
[3] Quebec's financial sector reform: What you need to know
[4] Quebec's financial sector reform: A new era for the industry
[5] Quebec's financial sector reform: What it means for investors
- The Act to amend various provisions mainly in the financial sector introduces the concept of "trading platforms" within the financial regulatory framework, which aims to accommodate new digital and electronic trading methods in securities and financial products, reflecting the evolving landscape of the business and finance industry.
- A key component of Quebec's financial sector reform is the creation of the Insurance Chamber, a self-regulatory body merging the Financial Services Chamber and the Damage Insurance Chamber, as part of an effort to harmonize Quebec's financial sector laws with those of other Canadian jurisdictions, and enhance business partnerships.
