Regulatory Alerts2023-06-09
Policy Statement 12-203 Respecting Management Cease Trade Orders
The Canadian Securities Administrators issued Policy Statement 12-203 to provide guidance on when they will issue Management Cease Trade Orders (MCTOs) in response to specified continuous disclosure defaults by reporting issuers. The policy establishes strict eligibility criteria, such as revenue generation and active trading markets, and mandates that issuers apply for an MCTO at least two weeks before a filing deadline while submitting detailed remediation plans. Issuers granted an MCTO must comply with alternative information guidelines, including issuing default announcements and bi-weekly status reports to keep the market informed throughout the period of default.
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