The national database of cease trade orders issued by participating securities commissions has added orders brought against firms and individuals. It previously only contained CTOs against issuers.

The database is intended to help protect investors and dealers from unintentional violations of CTOs. The enhanced CTO database now includes CTOs issued against both issuers and non-issuers by the securities regulatory authorities in Alberta, B.C., Manitoba, Ontario and Québec along with CTOs issued against non-issuers since January 1, 1999 by the securities regulatory authorities in New Brunswick, Newfoundland & Labrador, and Nova Scotia.

Prior to the establishment of the CTO database, investors and investment dealers were expected to search the databases of each securities commission, review commission bulletins and rely on news release information to ensure they were not violating CTOs. With an average of 100 new issuer CTOs every month, daily searches by investment dealers could not be completed in a timely manner, or the information was incomplete, resulting in unintentional non-compliance, RS says.

The CTO database contains more than 6,000 active issuer CTOs as well as some 3,500 historical CTOs dating back to 1971. In addition, it will now contain about 300 active non-issuer CTOs back to Jan. 1, 1999 and will be updated with additional, older outstanding orders in the future.

“Adding cease trade orders against individuals and management to this national database means investors and investment dealers can go to one place, for free, to access this important information,” said Peter Grant, deputy director and chief information officer at the BC Securities Commission. “It helps protect the public by letting them check to make sure the people who are providing them with financial advice or who are running companies they’re investing in haven’t been removed from the market. This database is a vital resource for dealers to ensure they are complying with orders by securities regulators across the country.”

The database is accessible free-of-charge at www.rs.ca