Who issues CTOs and when?
Securities regulatory authorities have sole authority to issue CTOs. They oversee securities regulation in their respective provinces or territories and require publicly traded companies to disclose material information to the public, such as annual and interim financial statements, within deadlines set by regulation. When an organization fails to do so, a CTO banning trading in the securities of the organization or banning trading by certain individuals and/or organizations from trading in securities of the organization may be issued.
Securities regulatory authorities are also tasked with enforcing the securities legislation in their province or territory. For instance, during the course of an investigation into potential wrongdoing, the securities regulatory authority may issue or ask a tribunal to issue a temporary order banning trading by individuals or organizations, or banning the trading in the securities of an organization.
Securities regulatory authorities can also impose or ask a tribunal to impose sanctions following the conclusion of a proceeding against respondents, which includes orders that ban trading by individuals or organizations, or orders that ban trading in the securities of an organization, either permanently or for a defined period of time.