Canadian law firm Blake, Cassels & Graydon today released commentary on the Ontario Securities Commission (OSC) decision on whether ABCP sponsor Coventree complied with disclosure requirements in the asset class.
The law firm said that the OSC decision is significant because it consolidates the interpretation of prospectus and timely disclosure requirements.
The verdict also showed that the OSC is capable of finding officers and directors who continually breach disclosure requirements guilty of these offenses.
For Blakes' views on the decision, please click here.
On Sept. 28., the OSC released its decision on whether Coventree complied with its timely disclosure obligations prior to certain parts of the Canadian ABCP market freezing up in 2007.
For a copy of the OSC decision, please click here.
The OSC also examined whether the firm met its disclosure obligations in its prospectus for its 2006 IPO.
It also looked at whether Geoffrey Cornish and Dean Tai in their capacities as Coventree senior officers and directors violated the Securities Act (Ontario) and whether the firm made misleading statements in ABCP investor presentations delivered in April 2007.
The OSC concluded that Coventree breached its timely disclosure obligations as a reporting issuer.
It also found that both Cornish and Tai authorized, permitted or acquiesced in the firm's non-compliance with the said disclosure obligations.
Furthermore, the OSC also stated that the conduct of Coventree, Cornish and Tai in contravening the Act was contrary to the public interest. As a result, the OSC has imposed sanctions isuch as administrative penalties in the amount of C$2.25 million.
The OSC has also prohibited Cornish and Tai from acting as a director or officer of a reporting issuer (other than Coventree) for a one-year period.