Article 7: Enforcement by Securities Regulators
1. Each Party shall provide that where it is the home country in respect of an offer under the Scheme, that Party's securities regulator shall have appropriate powers to take action in the home country in respect of any breaches of the home country securities legislation that apply to an offer made in the host country under the Scheme. Those powers shall include the power in the home country to suspend or stop the making of an offer under the Scheme in the host country, and the power in the home country to prohibit advertisements in the host country in respect of securities offered under the Scheme, in the same circumstances in which such powers could be exercised in respect of offers made in the home country.
2. Each Party shall ensure that where it is the home country in respect of an offer, its securities regulator shall accord complaints from persons in the host country in relation to offers made under the Scheme no lesser priority than similar complaints from persons in the home country in respect of offers made in the home country.
3. Each Party shall provide that where it is the host country in respect of an offer under the Scheme, that Party's securities regulator shall have the power to take action in the host country in respect of any breaches of the requirements of the implementing legislation, including the requirement that the offer comply with the relevant laws of the home country. Those powers shall include the power to suspend or stop the making of an offer under the Scheme in the host country, and the power to prohibit advertisements in the host country in respect of securities offered under the Scheme.
4. Each Party shall confer on its securities regulator the discretion to prohibit an offeror from making an offer under the Scheme if that offeror has failed to comply with the ongoing requirements in respect of a previous offer made under the Scheme.
5. The Parties shall confer on their respective securities regulators appropriate powers to cooperate in connection with enforcement action relating to offers made or purporting to be made under the Scheme.
6. The Parties shall consult promptly after the entry into force of this Agreement to examine the existing powers of their respective securities regulators relating to the sharing of information with a view to ensuring that they are consistent with the objectives of this Agreement.
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