Canadian Regulators Issue Guidance Regarding Cease Trade Orders



    TORONTO, March 28 /CNW/ - The Canadian Securities Administrators (CSA)
announced today they are seeking comments on proposed National Policy 12-203
Cease Trade Orders for Continuous Disclosure Defaults.
    NP 12-203 modernizes, harmonizes and streamlines existing CSA practices
relating to cease trade orders (CTOs) and provides guidance for issuers on
when regulators will issue a general CTO or a management cease trade order
(MCTO) in response to a serious continuous disclosure default.
    "Cease trade orders are an effective regulatory tool that send a clear
message to issuers who do not comply with filing and other continuous
disclosure requirements," said Jean St-Gelais, Chair of the CSA and President
& Chief Executive Officer of the Autorité des marchés financiers (Québec). "A
CTO is helpful in preserving the integrity of the capital markets for
investors and other market participants."
    The Policy describes the criteria that regulators consider when assessing
whether to issue a general CTO or an MCTO. It also outlines what information
an issuer should include in an application to regulators for an MCTO as an
alternative to a general CTO. In addition, the Policy reminds issuers and
insiders of the insider trading prohibitions under securities legislation, and
says that issuers in default should closely monitor and generally restrict
trading by management and other insiders, who may have access to material
undisclosed information.
    Proposed National Policy 12-203 Cease Trade Orders for Continuous
Disclosure Defaults and the related Notice and Request for Comment are
available on several CSA members' websites. The comment period closes May 27,
2008.

    The CSA, the council of the securities regulators of Canada's provinces
and territories, co-ordinates and harmonizes regulation for the Canadian
capital markets.





For further information:

For further information: Laurie Gillett, Ontario Securities Commission,
(416) 595-8913; Barbara Shourounis, Saskatchewan Financial Services
Commission, (306) 787-5842; Frédéric Alberro, Autorité des marchés financiers,
(514) 940-2176; Andrew Poon, British Columbia Securities Commission, (604)
899-6880; Nicholas A. Pittas, Nova Scotia Securities Commission, (902)
424-6859; Tamera Van Brunt, Alberta Securities Commission, (403) 297-2664;
Ainsley Cunningham, Manitoba Securities Commission, (204) 945-4733; Jane
Gillies, New Brunswick Securities Commission, (506) 643-7745; Marc Gallant,
Prince Edward Island, Office of the Attorney General, (902) 368-4552; Doug
Connolly, Financial Services Regulation Division, Newfoundland and Labrador,
(709) 729-2594; Louis Arki, Nunavut Securities Registry, (867) 975-6587;
Donald MacDougall, Securities Registry, Northwest Territories, (867) 920-8984;
Fred Pretorius, Yukon Securities Registry, (867) 667-5225


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