CANADA Pot exchange publishes investors’ personal info
Investment information crosses privacy boundaries: shareholder rights advocate
The Canadian Securities Exchange has been publishing personal information of investors on its website for 15 years, including home addresses and amounts of their investments, a practice one shareholder rights advocate calls a “disturbing” breach of privacy.
The CSE, a small stock exchange that’s raised its profile by becoming the go-to listing spot for many cannabis companies, has had an internal rule in place since 2003 that requires it to publish data on its website for all private placement transactions. The result is that thousands of names, complete addresses and details on the value QUEBEC—Liberal Leader Philippe Couillard may decide to trigger Quebec’s general election campaign several days earlier than expected, according to Radio-Canada.
The CBC’s French-language network reported that and price of each investment is posted on what’s known as a Form 9. There were 5,845 such forms publicly available on the CSE’s website on Aug. 3.
The CSE disclosures raise personal privacy concerns, said Frank Allen, executive director of FAIR Canada, an investor rights group.
“The extent of personal investor information required by the CSE’s Form 9 is disturbing and in our view goes beyond the level of information necessary for the CSE to discharge its private placement regulatory mandate,” Allen said in an email, noting that the parallel disclosure form required under Canadian securities laws keeps investors’ personal information confidential.
The policy has been an annoyance for some. Tarik Elsaghir, president of Cedar
sources close to the premier say he’s considering extending the campaign in order to throw Francois Legault’s surging Coalition Avenir Quebec into the political arena for a longer stretch.
While the vote would still be held on Oct. 1 as planned, the length of the campaign would be extended from the minimum 33 days to as much as the maximum 39 days. Point Capital Inc., a family office in Calgary, said he’s received unsolicited pitches on other stocks from people who got his firm’s information off the CSE’s website. A Form 9 filed on June 15 shows Cedar Point bought 500,000 shares of Tidal Royalty Corp. at 33 cents a share. Tidal didn’t return calls seeking comment.
Individual buyers in these private placements tend to be wealthy, getting “accredited” investor exemptions, meaning they have personal financial assets of more than $1 million or income of at least $200,000.
Richard Carleton, chief executive officer of CSE’s parent company CNSX Markets Inc., said the Toronto-based CSE is looking to revise the rule after receiving feedback from issuer companies, exempt market dealers and investors supporting a change in the policy. The exchange plans to publish for public comment amendments that would remove the requirement for companies to disclose the names, addresses and number of shares acquired by arm’s-length investors, he said. Richard Carleton, chief executive officer of CSE’s parent company CNSX Markets Inc.
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