CSA adopt NP 12-203 Cease Trade Orders for Continuous Disclosure Defaults
The CSA have adopted National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults (“NP 12-203”).
NP 12-203 provides guidance as to how the CSA will respond to certain types of continuous disclosure defaults and:
- modernizes, harmonizes and streamlines existing practices relating to cease trade orders (CTOs) including general CTOs and management cease trade orders (MCTOs);
- provides guidance for issuers as to the circumstances in which the CSA regulators will issue a general CTO or an MCTO;
- explains factors the CSA regulators will consider when evaluating an application for an MCTO; and
- describes what other actions issuers need to undertake if the CSA regulators issue an MCTO.
