CSA issues guidance, offers to accommodate ‘shorter periods’ in light of coronavirus outbreak
The Canadian Securities Administrators (CSA) have issued guidance to reporting issuers whose ability to file documents in a timely fashion may be affected by the current COVID-19 outbreak.
In a statement, the regulatory group encouraged reporting issuers to contact their principal regulator with regards to any potential impact the outbreak may have on their ability to fulfill their obligations as set out under securities legislation.
“Issuers that foresee not being able to file their annual or interim financial statements by their prescribed deadline because of the current COVID-19 outbreak should consider applying for a management cease-trade order (MCTO),” the CSA said.
A regulator may issue an MCTO instead of a failure-to-file cease trade order under certain conditions provided in National Policy 12-203 Management Cease Trade Orders. Issuers who are the subject of an MCTO must comply with alternative information guidelines as provided in NP 12-203 until the required documents are filed.
“Under normal circumstances, applications for an MCTO should be filed at least two weeks before the due date for the required filings,” the CSA said, clarifying that it will “work to accommodate shorter periods where necessary.
“The CSA is continuing to monitor the impact of COVID-19 on Canadian capital markets and may issue further guidance in due course,” it added.
