medical-marijuana-pot

There’s no CDS ban on the clearing of securities of issuers with marijuana-related activities in the U.S., says TMX Group in a Friday release—at least, not yet. 

TMX Group, owner and operator of clearing house CDS, is in talks with CSA regarding the clearing of securities of such issuers because the matter touches on “multiple aspects of Canada’s capital market system,” it says. 

CDS and CSA are discussing the rules, in both Canada and the U.S., for issuers that carry on such activities and that apply to list on exchanges in both countries. They’re also examining issuers’ compliance with applicable laws. 

On Oct. 16, TMX Group warned that companies with business activities that violate U.S. federal law on marijuana could face a delisting review at the TSX. On the same day, the Canadian Securities Administrators (CSA) issued a notice saying only that marijuana companies must tell investors about the risks when investing in the U.S.

The smaller Canadian securities exchange says it won’t review marijuana companies with U.S. links as long as they follow disclosure requirements and comply with appropriate state law.

Read:

As marijuana rules become clearer, risks remain 

The challenges ahead for Cannabis producers

Originally published on Advisor.ca
Add a comment

Have your say on this topic! Comments are moderated and may be edited or removed by
site admin as per our Comment Policy. Thanks!