CALGARY, Feb. 22, 2018 /CNW/ - The Alberta Securities Commission (ASC) has reciprocated an order made by the United States Securities and Exchange Commission (SEC) against Fengjiu Zhang, the former president and chief executive officer of CNOOC Limited's Canadian subsidiary, CNOOC Canada Inc. The SEC had found that Zhang violated US insider trading laws with respect to the securities of Calgary-based Nexen Inc. prior to the July 2012 announcement that Nexen would be acquired by CNOOC for approximately US$15.1 billion. Zhang entered into a settlement agreement with the SEC but neither admitted nor denied its allegations against him.
An ASC panel stated that: "We are . . . satisfied that reciprocation of the SEC Order would serve the public interest. . . . The misconduct described in the SEC Order would have constituted contraventions of insider trading and tipping provisions in the [Alberta Securities] Act, which serve to protect investors and the integrity of the Alberta capital market. The impugned conduct occurred partly in Alberta, when Zhang was a resident of Calgary, and involved the securities of an Alberta-based reporting issuer."
The panel ordered that:
- Zhang must resign all positions that he holds as a director or officer of any reporting issuer; and
- Zhang is prohibited from becoming or acting as a director or officer (or both) of any reporting issuer until September 28, 2020.
Effective July 1, 2015, most new orders and settlement agreements made by other securities regulatory authorities in Canada automatically take effect in Alberta as well. Orders or agreements by international regulators can be reciprocated in Alberta by an order of the ASC, but this does not occur automatically.
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
SOURCE Alberta Securities Commission
For further information: For Media Inquiries: Hilary McMeekin, Manager, Communications, 403.592.8186; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488