The Ontario Securities Commission, Canada’s main stock-market regulator, is reviewing 24 emerging-market issuers in the wake of its investigation of forestry company Sino-Forest Corp.
The regulator is trying to determine whether the companies “provided the required disclosure and conducted the required due diligence,” OSC Chairman Howard Wetston said today at an event in Toronto.
According to preliminary findings, Wetston noted “governance challenges” whenever the issuer’s management and bulk of its operations are based in a foreign jurisdiction. The regulator is also finding that audit procedures may be impacted by companies located abroad.
The Ontario Securities Commission on Sept. 8 extended a trading ban on Sino-Forest shares to Jan. 25 as it investigates allegations of fraud at the company. The OSC ordered a cease-trade order on Aug. 26 and said that officers and directors of Hong Kong- and Mississauga, Ontario-based Sino-Forest may have engaged in acts “related to its securities” that they “knew or should have known” perpetrated a fraud.