Cease Trade Orders
The British Columbia Securities Commission issues cease trade orders against reporting and non-reporting issuers, as well as individuals, because they have failed to comply with securities regulations, particularly filing requirements.
Cease trade orders (CTO) have effect in the jurisdiction that issues the order. If the issuer is reporting in more than one jurisdiction, the order may also have automatic effect in those other jurisdictions because of statutory reciprocal order provisions or the application of MI 11-103 Failure-to-File Cease Trade Orders in Multiple Jurisdictions.
Cease trade orders typically remain in effect indefinitely until they are revoked. When the BCSC orders that all persons cease trading in the securities of an issuer, that order prohibits trading through an exchange, securities issuances by issuers and private transactions.
The National CTO database includes cease trade orders for failure to file as well as cease trade orders found in enforcement decisions, settlements, and temporary orders from companies and individuals from BC and other Canadian jurisdictions. Historical company CTO coverage begins in 1971 for some jurisdictions. The Canadian Securities Administrators website provides specific information about the coverage of the National CTO database.
Effective March 27, 2020, if a person is the subject of certain orders or settlement agreements issued by another securities regulator in Canada, that order or settlement is automatically in effect against the person in British Columbia, without notice to the person and without an opportunity to be heard. For more information about the types of orders and settlements that are automatically in effect in BC, see “Automatic Reciprocal Orders”.
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