“I can see why they’re cracking down on it in the sense that you’ve got listed companies without real businesses,” said Krisztián Tóth, a partner in the securities practice at law firm Fasken Martineau DuMoulin LLP in Toronto. “Once there’s real mischief, it’s not the CSE that’s going to stop it. It’s the OSC that has to step in.”
“I’m sure it was either partially not being diligent enough, and, also, you’re getting fees…it’s probably a combination of those that led to this situation,” Tóth said.
“They always had this discretion. It’s just they got called out on it by their parent, the regulator, having some concern,” Tóth said.