Securities Dealing Restrictions (Cooperative Credit Associations) Regulations

The Securities Dealing Restrictions (Cooperative Credit Associations) Regulations were created under the Cooperative Credit Associations Act, with the aim to restrict the dealing in securities by cooperative credit associations in Canada. The regulations came into effect on June 1, 1992.

These regulations restrict the types of securities dealings that can be conducted by an association, including the primary distribution of shares or ownership interests, secondary market trading, and the distribution of debt obligations. However, certain exceptions apply to specific types of transactions, such as dealing in government securities, corporate bonds, or mutual funds for pension plans.

The regulations also provide exemptions for associations that deal with their own account or for investment counselling and portfolio management services. Furthermore, the regulations allow for certain other types of transactions, including unsolicited participation in secondary market trading through a registered securities broker and private placements of securities on a similar basis to underwriting. The regulations are designed to promote public interest and protect investors by restricting the ability of cooperative credit associations to engage in certain types of securities dealings.