Securities Transfer Act Update - Legislation in Canada Almost Uniform
Bill 26, the Securities Transfer Act, was recently introduced in the Nunavut Legislative Assembly. As of today, “STA” legislation is in force in every province and territory of Canada, other than Yukon territory, Nova Scotia, Prince Edward Island and Nunavut (where Bill 26 is pending).
STA legislation in Canada is based on the Uniform Securities Transfer Act (“USTA") - a model act that was developed and endorsed by the USTA Task Force of the Canadian Securities Administrators. The intent behind this legislative initiative is to have substantively uniform statutes across the country governing the holding and transfer of securities and other investment property. Just over three years after the first STA legislation came into force in Alberta and Ontario, the objective of uniformity has almost been achieved.
Both the STA and USTA are modeled after Revised Article 8 of the Uniform Commercial Code. The close similarities among STA legislation and Revised Article 8 assist in creating a more consistent cross-border legal framework governing securities transfers.
