The Foreign Equities Division’s enforcement activities complement those of other agencies with whom we cooperate and share information on matters of mutual interest.
This allows the Foreign Equities Division to focus activities and prioritize resources where most appropriate.
For purposes of clarification, this release explains the Foreign Equities Division notification mandate about enforcement actions. During inquiries and examinations, Foreign Equities Division has been requested to provide notifications regarding enforcement action. For instance, the Foreign Equities Division is requested if it will advise the subject of the examination of the proposed action before it submits the issue under examination to enforcement agencies or decides on an alternative resolution. The Foreign Equities Division in its mandate is not obliged to give notification about enforcement actions and no such required notification to this effect.
This action paper takes up the issue of legitimacy and veracity in takeover declarations and bids. It is intended for various market participants making public declarations bidding on takeovers. The Foreign Equities Division looks into these declarations and gauges the accuracy of declarations that are last and final, corrections and updates, and such that are ambiguous and deceptive.
The Foreign Equities Division considers conceding case-by-case relief from corporate restrictions to provide investment advisor or firm to obtain a large bundle of securities from multiple clients as principal for timely clearance in the course of providing client implementation services. The Foreign Equities Division will only provide relief if it does not determined that the investment advisor or firm has a control resolution. Any relief provided will be subject to restrictions developed to confine the investment advisor’s or firm’s capability to put forth jurisdiction over the significant entity and to avoid inventorying.
Enforcing compliance is a fundamental aspect of the Foreign Equities Division's duties. The Foreign Equities Division plays a crucial role in identifying breaches of securities laws or actions in the capital markets that go against the public interest. By administering suitable penalties, the Foreign Equities Division discourages misconduct, safeguards investors, and promotes the existence of fair and efficient capital markets that instill confidence in investors. Members of the Foreign Equities Division's enforcement team address potential violations of securities laws, which are identified either through internal compliance and surveillance departments of Foreign Equities Division members or as a result of complaints from market participants and the public.
We encourage you to forward your questions by email.
