The OTC rule addresses the damage to the reputation of Canada's capital markets by market participants with strong connections to Canadian jurisdictions who engage in abusive activities through OTC markets in the US.
The OTC rule:
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requires disclosure by issuers with a significant connection to a Canadian jurisdiction whose securities are quoted in the US OTC markets; and
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discourages the manufacture and sale in a Canadian jurisdiction of US OTC quoted shell companies that can be used for abusive purposes.
“The reputation of Canada’s capital markets have been negatively impacted by market participants who engage in questionable activities through the OTC markets in the United States”, said Bill Rice, Chair of the Canadian Securities Administrators (CSA) and Chair and CEO of the Alberta Securities Commission. “We have enacted the OTC rule to address this reputational harm, and to help protect legitimate issuers, investment dealers, and other market participants in participating jurisdictions.”
Press release
© AMF - Autorité des Marchés Financiers
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