Securities Dealing Restrictions (Trust and Loan Companies) Regulations

The Securities Dealing Restrictions (Trust and Loan Companies) Regulations restrict the dealings in Canada in securities by a company registered under the Trust and Loan Companies Act. The regulations come into effect on June 1, 1992.

These regulations limit the types of securities dealings that can be conducted by a trust or loan company. They prohibit the primary distribution of shares or ownership interests, secondary market trading in shares or ownership interests, the primary distribution of debt obligations of a body corporate, and acting as a selling agent in connection with the distribution of mutual funds.

However, there are certain exceptions to these restrictions. A company is allowed to deal in securities for its own account or for accounts administered or managed by the company, providing investment counselling and portfolio management services. Additionally, certain types of government-backed securities, debt obligations guaranteed by a corporation that is directly or indirectly owned by a government, and syndicated or consortium loans are also permitted.

The regulations aim to protect investors and ensure fair market practices in Canada's securities markets. They apply to trust and loan companies registered under the Trust and Loan Companies Act and come into effect on June 1, 1992.