CALGARY, Sept. 13, 2011 /CNW/ - Securities regulators in Alberta,
Ontario, Québec, Nova Scotia, New Brunswick and Northwest Territories
have issued a notice identifying concerns regarding issuers who use
mass advertising in all mediums, including television, social media,
internet, radio and print. CSA Multilateral Staff Notice 51-336 warns
issuers that the use of mass advertising to generate interest in
securities may not comply with securities laws' disclosure requirements
and may be misleading to investors.
"Some of these brief advertisements, highlighting the issuer's stock
trading symbol and select positive business prospects, seem intended to
primarily promote the issuer's securities," said Bill Rice, Chair of
the CSA and Chair and CEO of the Alberta Securities Commission. "We are
of the view that these advertisements fall short of providing the
necessary depth of information that investors require to make informed
Securities regulators note that these types of advertisements may raise
compliance issues and investor protection concerns, and may not reflect
positively on the integrity of issuers or the Canadian capital markets
as a whole.
Securities regulators in these jurisdictions will continue to monitor
advertisements by issuers. If an issuer's advertisement breaches
securities legislation, appears to be misleading to investors, or is
deemed contrary to the public interest, securities regulators will
request the issuer change the disclosure or they may take other
regulatory action, where appropriate.
Investors are also encouraged to look at investment advertisements with
a critical eye and do their homework before investing.
CSA Multilateral Staff Notice 51-336 has been posted to the websites of
the Alberta, Ontario, Québec, Nova Scotia, New Brunswick and Northwest
Territories securities regulators.
The CSA, the council of the securities regulators of Canada's provinces
and territories, co-ordinates and harmonizes regulation for the
Canadian capital markets.
SOURCE Alberta Securities Commission
For further information:
| Mark Dickey |
Alberta Securities Commission
| Sylvain Théberge |
Autorité des marchés financiers
| Carolyn Shaw-Rimmington |
Ontario Securities Commission
| Wendy Connors-Beckett |
New Brunswick Securities Commission
| Natalie MacLellan |
Nova Scotia Securities Commission
| Donn MacDougall |