CSA issues response to capital market turmoil

In light of recent developments in the financial markets, the Canadian Securities Administrators (CSA) says it is continuing to monitor closely events both domestically and internationally to determine whether additional regulatory responses are necessary.
Members of the CSA have taken, or are taking, the following actions:
Temporarily prohibited short selling of the common shares of certain financial sector issuers that are listed on the Toronto Stock Exchange and inter-listed in the
United States, where the U.S. Securities and Exchange Commission has issued a broad ban on short selling of financial issuers.
Initiated a fact-finding review of money market funds and other market participants by way of a combination of questionnaires and selected on-site reviews to assess potential exposure to assets that are impaired or made illiquid. In light of current market conditions, continuous disclosure reviews of investment funds are also ongoing.
Created a special committee in late 2007. The committee will consider and recommend regulatory responses to aspects of the seizure of the non-bank sponsored asset-backed commercial paper (ABCP) market in Canada.
Monitoring continuous disclosure by reporting issuers with a particular emphasis on the banking and financial services sector and highly leveraged reporting issuers.
Collaborating with other Canadian regulatory authorities that oversee the Canadian financial industry to share information and coordinate actions.
Working closely with regulators around the world and actively monitoring international developments.
“The CSA is actively engaged in an examination of the issues related to the current market events and will continue to take regulatory action, where appropriate, to protect investors and market integrity in these extraordinary times,” said Jean St-Gelais, CSA chair and president and CEO of the Autorit des marchs financiers (Qubec).