Canadian Securities Regulators Respond to Current Capital Market Events



    TORONTO, Sept. 26 /CNW/ - In light of recent developments in the
financial markets, the Canadian Securities Administrators (CSA) and the
Investment Industry Regulatory Organization of Canada (IIROC) continue to
closely monitor events both here at home and internationally to determine
whether additional regulatory responses are necessary.

    Members of the CSA have taken, or are taking, the following actions:

    
    -   Temporarily prohibited short selling of the common shares of certain
        financial sector issuers that are listed on the Toronto Stock
        Exchange and are also interlisted in the United States, where the
        U.S. Securities and Exchange Commission has issued a broad ban on
        short selling of financial issuers;
    -   Initiated a fact-finding review of money market funds and other
        market participants by way of a combination of questionnaires and
        selected on-site reviews to assess potential exposure to assets that
        are impaired or made illiquid. In light of current market
        conditions, continuous disclosure reviews of investment funds are
        also ongoing;
    -   Created a special committee in late 2007 that has considered and will
        be recommending regulatory responses to aspects of the seizure of the
        non-bank sponsored asset-backed commercial paper (ABCP) market in
        Canada;
    -   Monitoring continuous disclosure by reporting issuers with a
        particular emphasis on the banking and financial services sector and
        highly leveraged reporting issuers;
    -   Monitoring, through IIROC, trading on the markets to assess if they
        continue to be fair and orderly and determine whether further steps
        should be taken;
    -   Collaborating with other Canadian regulatory authorities that oversee
        the Canadian financial industry to share information and coordinate
        actions;
    -   Working closely with regulators around the world and actively
        monitoring international developments.
    

    "The CSA is actively engaged in an examination of the issues related to
the current market events and will continue to take regulatory action, where
appropriate, to protect investors and market integrity in these extraordinary
times," said Jean St-Gelais, CSA Chair and President and Chief Executive
Officer of the Autorité des marchés financiers (Québec).

    IIROC has taken, or is taking, the following actions:

    
    -   Issued two Notices providing a reminder to Participants and Access
        Persons respecting their obligations generally in the handling of a
        short sale and specific guidance on the obligations of Participants
        and Access Persons in complying with the Temporary Order issued by
        the CSA;
    -   Increasing its surveillance of short selling activity on Canadian
        marketplaces and, in particular, short selling activity in securities
        of issuers in the financial sector that are not covered by the
        Temporary Order;
    -   Closely monitoring regulatory capital position of all dealer member
        firms to assess impact of current market conditions and in particular
        market volatility;
    -   Conducted regulatory study and will be making recommendations
        concerning the manufacture and distribution by IIROC member firms of
        third party ABCP in Canada.
    

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

    IIROC is the national self-regulatory organization which oversees all
investment dealers and trading activity on debt and equity marketplaces in
Canada.





For further information:

For further information: For media inquiries: Laurie Gillett, Ontario
Securities Commission, (416) 595-8913; Barbara Shourounis, Saskatchewan
Financial Services Commission, (306) 787-5842; Sylvain Théberge, Autorité des
marchés financiers, (514) 940-2176; Andrew Poon, British Columbia Securities
Commission, (604) 899-6880; Natalie MacLellan, Nova Scotia Securities
Commission, (902) 424-8586; Mark Dickey, Alberta Securities Commission, (403)
297-4481; Ainsley Cunningham, Manitoba Securities Commission, (204) 945-4733;
Wendy Connors-Beckett, New Brunswick Securities Commission, (506) 643-7745;
Mark Gallant, Prince Edward Island Office of 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; Donn MacDougall, Securities Registry, Northwest Territories, (867)
920-8984; Fred Pretorius, Yukon Securities Office, (867) 667-5225; Connie
Craddock, IIROC, (416) 943-5870


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