According to the statement, those who interact with or with their property or assets, any of the “designated persons” listed in Schedules 1, 2, or 3 of the Rules, may be directly affected by the sanctions.
Among other prohibitions specified under the rules, the CSA stated that no person in Canada or outside Canada is permitted to:
- deal in any property held by or on behalf of a nominee named in Schedule I;
- entering into or facilitating any transaction relating to such transaction;
- Provide any financial or other related services in connection with such transaction.
“While the restrictions apply beyond the scope of Canadian securities law, all market participants are potentially affected, including issuers, markets, clearing agencies, custodians, registrars of all categories, crypto asset trading platforms and pensions, investments and This includes mutual funds and their managers,” the CSA said.
The effect may also extend to other entities – such as banks and accounting firms – that facilitate financial transactions or provide financial or audit services in relation to related transactions or designated persons, the statement said.
“Furthermore, certain entities must determine on an ongoing basis whether they are in possession or control of property owned or controlled by a nominee,” the CSA said, for any position or proposed transaction. Requirements are that such assets must be reported to the Commissioner of the RCMP.
