Under the Act, the British Columbia Financial Services Authority (BCFSA) will have the authority to regulate the MSBs in the province. A Superintendent for MSB will have multiple authorities regarding licensing, investigation and suspension of licenses in MSB operating in the province of British Columbia. The MSB businesses that fall under the provisions of the Act will have multiple additional reporting responsibilities, will have to register with the Superintendent and more.

In addition, the Superintendent will have the authority to impose severe monetary penalties on non-compliant MSBs—up to $100,000 for non-compliant MSBs, up to $200,000 for MSBs committing an offence under MSBA, and up to two years of imprisonment for individuals.

Although it is still unclear what the extent of the liabilities and reporting obligations of MSBs in the province will be, the new Act and regulations seem to result in an additional burden on MSBs registered and/or operating in the province.

One of the main distinctions between the new Act and currently operating PCMLFTA regulations is that the Superintendent will have broad powers to refuse, suspend or even cancel licenses of non-compliant MSBs. To support these powers, the MSBA provides a list of criteria under which certain existing or prospective MSBs will be deemed as "unfit" to operate in BC, meaning that such MSBs will not be able to apply for and/or receive MSB licenses in the province.

With the regulatory regime in BC imposing additional and significant responsibilities on MSBs registered in the province, and with the threat of high penalties and possible imprisonment for individuals committing contraventions under the Act, we propose a cost-efficient and streamlined solution for the MSBs registered in BC – to transfer their operations, including corporate registration and MSB license to Ontario. Our solution will provide you with the following benefits:

• Continued existence of your corporation but under Ontario jurisdiction (continuance)
• The Business Corporations Act of Ontario does not require the appointment of a local Canadian director (unlike the BC law).
• Continued and uninterrupted operations of your business outside the scope of BC MSBA.
• Your business's incorporation date will remain the same as the original date on which you registered your BC corporation.
• After your MSB is continued to Ontario, we will assist with the FINTRAC update of your MSB license.

As one of the leading providers of legal and administrative support for MSBs, we will be happy to provide you with a registered address and FINTRAC-compliant office (at an additional cost).

To review your circumstances and discuss the continuance process and any other questions arising from the introduction of MSBA in British Columbia, please fill out our online contact form, and we will be in touch shortly.