Canadian Lawyer

w w w . C A N A D I A N L a w y e r m a g . c o m J A N U A R Y 2 0 1 6 7 T he New Brunswick government is currently updating the 36-year- old legislation that governs how the co-operative sector in the province is regulated. It is also poised to introduce amended securities and related legislation to allow for the formation of community economic development corporations and associa- tions, which are of particular interest to co-ops. The former may be several years away before completion; the lat- ter is imminent. "Industry has expressed concerns to us that legislation does not meet its needs in the current economic envi- ronment. In [our] view, and following discussions with stakeholders, a new framework is needed to modernize co-operative legislation," says Rick Hancox, CEO of New Brunswick's Financial and Consumer Services Commission in Fredericton. A legislative working group established to help draft new legisla- tion delivered its 130-page report to government last year and now the province's securities commission is reviewing statutes in other Canadian jurisdictions and consulting with stake- holders. It will ultimately put together a proposal and recommendations for government to move forward. The co-op sector is pushing for a regulatory shift that will give co-opera- tives greater control and require fewer reporting requirements. According to the report, the proposed role of the regulator would be quasi-judicial. Also, rather than supervising co-operatives to ensure viability, the disclosure regu- lations would be put in place to protect investors. Compliance will be a cornerstone of the new legislation, says Hancox. "We need a regulatory framework that is not onerous but has enough protec- tions that people aren't going to get taken to the cleaners." While the current legislation is under the microscope, it is full steam ahead with plans to allow New Bruns- wick investors to invest in community economic development corporations, which support development of co- operatives and small business while providing local investors with a sig- nificant tax break. The new model will offer investors in approved co-ops, companies, and associations a 50-per- cent non-refundable New Brunswick income tax credit on their investment, which cannot be touched for four years. For the new program to launch, amendments must be made to the Small Business Investor Tax Credit Act and the New Brunswick Income Tax Act. As well, the Financial and Consumer Services Commission must release final disclosure regulations. Once the legislative changes are in place, New Brunswick will become the third province in Canada to allow for the establishment of community eco- nomic development investment funds, or CEDIFs, as they are called in Nova Scotia and P.E.I. CEDIFs are pools of capital formed through the sale of shares to people within a community. — DONALEE MOULTON donalee@quantumcommunications.ca REGIONAL WRAP-UP AT L A N T I C \ AT L A N T I C \ C E N T R A L \ W E S T New co-op landscape — and legislation Continued on page 8 CROWN ATTORNEY ERRED IN CYBER BULLYING CASE A n independent review commissioned by Nova Scotia's minister of justice has concluded a legal misstep by a junior Crown attorney resulted in child pornography charges not initially being laid in the Rehtaeh Parsons case, a high-profile case that brought national attention to the issue of cyber bullying and resulted in the country's first cyber bullying legislation. That initial law was struck down in December and will likely have to be redrafted to ensure it repsects freedom of expression Charter rights. In the Parsons' case, Murray Segal, a former chief prosecutor and deputy attorney general of Ontario, investigated whether the systems, policies, and pro- cedures related to cyber bullying, child pornography, and sexual assault were followed and adequate. He also assessed whether advice offered by the Crown was appropriate and followed the policies and guidelines of the Public Prosecu- tion Service as well as whether those guidelines and policies are appropriate. Segal concluded child pornography charges following the death of 17-year- old Parsons, who committed suicide after being sexually assaulted and cyber- bullied, should have been laid. He determined a junior Crown counsel had erred. The lawyer, who consulted with a senior prosecutor, decided a key piece of evidence, a photograph, was not definitive enough to establish whether the young people in question were underage. "The Crown's advice related to the child pornography offences was incorrect. It reflected a misunderstanding of

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