DD Support Board and Research Team

[1manband]

As I understand it, since there is no central securities commission in Cda if one provincial regulator cto’s typically the rest follow..

Actually, that is not the case. In March 2016, most of the Provincial Regulators adopted MI 11-103 which automatically extends cease-trade orders for failure to file to other Provinces, but Ontario is not a participant. They decided instead to opt to reciprocate, but it is not automatic.

The real teeth in such orders in Canada lie with the brokers, as many will not permit trades in a stock that has any cease-trade order in effect in a Canadian Province, as they no longer want to be accused of assisting a resident of that Province to circumvent the law. And since so many of the real problem companies are not on a Canadian Exchange but instead are only traded in the US OTC market, many of the trades are done in the US through foreign shell and front companies, anyway. The Canadian CTO's have very limited effect on OTC frauds, but it does largely stop Canadian investors from buying in after that point.