Actions, Sanctions & Penalties for Insider Trading – Securities Regulation

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Actions by or on Behalf of the Reporting Issuer

  • Issuer can bring action against insider. Issuer must show that the person was an “insider”, “affiliate” or “associate” of the issuer, that the person bought or sold with knowledge of material information, or informed, and that they did so before the information was generally disclosed.
  • The Securities Commission can bring an application for leave to bring an action in the name of and on behalf of the issuer to enforce the duty to account if the issuer does not.
  1. Administrative sanctions
  2. Cease trade orders
  3. Removal of exemptions
  4. Prohibitions from acting as a director or officer
  5. Administrative penalty
  6. Insider reporting.

*subject to defences above

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