Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }
Coronavirus information
Coronavirus information
The Zero Canada Project provides resources to help you manage your health, your finances and your family life as Canada reopens.
Visit the hub

Publicly traded companies at risk of missing filing deadlines because of COVID-19 disruptions are being encouraged by Canada’s provincial securities regulators to make a special application to avoid a sweeping, and potentially devastating, cease trade order.

The Canadian Securities Administrators (CSA), the umbrella group that represents the provincial securities regulators, issued a statement Monday reminding securities issuers that, if they are going to be late with their required financial disclosures, they can apply for a management cease trade order.

A management cease trade order, or MCTO, applies only to certain officers and directors but not the public. The prohibition prevents only company insiders from trading on whatever information they have yet to disclose to the public, while granting the company more time to complete its filing obligations.

Story continues below advertisement

The CSA’s release states that, “under normal circumstances,” such an application for a management cease trade order should be made two weeks before the due date for required filings. However, the CSA said it wanted to assure issuers that its members “will work to accommodate shorter periods where necessary.”

The release does not address how quickly the commissions will process such applications, or how much extra time companies will be granted to file their financials.

A failure-to-file cease trade order can serve as a huge blow to a company because existing investors are unable to sell their securities and prospective investors are barred from purchasing shares in the company. It can also hinder a company’s ability to secure financing.

Terence Dobbin, a securities lawyer and senior partner at Norton Rose Fulbright LLP, called the CSA’s reminder an “appropriate response by the regulators to the current situation.

“Regulators have recognized that there are many cases where a full cease trade order is simply too blunt a tool and does not serve to protect investors,” Mr. Dobbin said in an e-mail.

In a separate news release, the Ontario Securities Commission announced that it is postponing all on-site compliance reviews of the businesses that it regulates. The commission is also postponing all in-person hearings until at least April 30, 2020, and is exploring whether anyone with a hearing scheduled before that date can proceed by teleconference or in writing.

Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies