OSC chair said this could lead to a requirement for registration by some market players, or enforcement actions
The Ontario Securities Commission is considering following British Columbia’s lead in a regulatory crackdown on stock promotions and manipulation using social media, a key element of the GameStop phenomenon that roiled markets earlier this year.
The B.C. Securities Commission proposed sweeping new rules in May that would require anyone promoting stocks on social media or via videos on platforms such as YouTube to reveal whether they own the security or derivatives of it, and disclose any compensation they are receiving for the promotion. The rules would also prohibit misstatements without requiring proof of impact on the value of securities.
“We’re looking at that in Ontario as well,” Grant Vingoe, chair and chief executive of the Ontario Securities Commission, said Tuesday during an online conference held by Canada’s largest capital market regulator.
“And we’re also looking at under our existing tools, delving into influencers, social media, to really identify misleading and manipulative statements, statements that are made by people who have financial interests, statements that are relied on because people have millions of followers, but just contain misinformation.”
He said this could lead to a requirement for registration by some market players, or enforcement actions.
Brian Kladko, manager of media relations at the B.C. Securities Commission, said the provincial regulator is reviewing feedback received in response to its proposed crackdown on social media promotions, and there is a “possibility of adopting rules with other jurisdictions” in Canada.
“Our proposed rules were enabled by an amendment to B.C. Securities Act,” he said. “If other jurisdiction adopt the same or similar rules, they might need to get similar amendments to their respective securities legislation.”
The speed at which misinformation can spread unchecked via social media, allowing for stock manipulation, is a concern at regulators around the world.
Cathie Amour, Commissioner of the Australian Securities and Investments Commission, who took part in the OSC conference, said her organization has undertaken enforcement investigations in the most egregious cases.
Coordinated activity pushing long-ignored stocks to new highs — as happened with moribund video game company GameStop in the United States — is “pretty awful” when it leads to significant investor losses and erodes confidence in the capital markets, she said.
But cracking down on suspected social media manipulation has posed a significant challenge and prompted experimentation and pilot projects at the Australian regulator, including interacting with so-called “finfluencers” who encourage retail investors to jump into financial markets, and the firms that hire them.
“Many of these folks are paid (to tout) the various products,” Amour said, adding that they don’t have qualifications or skills to provide useful advice, and are not upfront about being compensated to promote.
In some cases, the regulator has joined online chatrooms, letting investors know they’re being watched and warning that they could find themselves in the crosshairs of the market watchdog if they are manipulating or have failed to obtain a licence to sell securities.
“We’re trying things. We’re not sure we’ve got the right answers,” Amour said, noting that the first reaction among some in the chat room was to assume the ASIC messages were fake.
Edward Kholodenko, chief executive of Questrade, who took part in the same panel discussion as Amour, acknowledged that there have been a few tragic, high-profile outcomes for investors who were manipulated and lost a lot of money.
But he urged regulators and policymakers not to ignore the power of social media, including videos to educate and inform investors.
“We need to be careful (not) to be paternalistic,” he said. “We shouldn’t be looking to protect people from their money.
He suggested regulators beef up staff and expertise so they can keep tabs on what’s going on online and use social media themselves to influence people not to fall for attempts at manipulation and the “gamification” of trading.
Ontario finance minister Peter Bethlenfalvy, who spoke at the OSC’s Dialogue conference Tuesday, said he has a couple of agenda items of his own for the OSC, both involving the country’s big banks. In a letter last week, he asked Canada’s largest capital markets regulator to examine tied selling and reductions or restrictions on the selling of third-party investment products.
The first issue was raised as a concern during a months-long task force consultation kicked off by the provincial government. Full-service banks are not supposed to require clients to take on certain financial products or services in order to get others, but smaller independent investment dealers have long complained that they lose out on advisory business because they cannot compete with the suite of products including loans held out by the big banks.
The second issue the provincial finance minister wants examined, a reduction in the sale of non-bank investment products, has been linked to stepped-up regulatory requirements for advisors when it comes to understanding the products they sell. Some market watchers see it as an unintended consequence of the new requirements, while others have suggested the banks are using the new rules to give preference to their investment products.
• Email: bshecter@nationalpost.com | Twitter:
Hallmark launching a streaming service with two new original series, and Bill Skarsgård out for revenge in “Boy Kills World” are some of the new television, films, music and games headed to a device near you.
Also among the streaming offerings worth your time as selected by The Associated Press’ entertainment journalists: Alex Garland’s “Civil War” starring Kirsten Dunst, Natasha Rothwell’s heartfelt comedy for Hulu called “How to Die Alone” and Sylvester Stallone’s second season of “Tulsa King” debuts.
NEW MOVIES TO STREAM SEPT. 9-15
— Alex Garland’s “Civil War” is finally making its debut on MAX on Friday. The film stars Kirsten Dunst as a veteran photojournalist covering a violent war that’s divided America; She reluctantly allows an aspiring photographer, played by Cailee Spaeny, to tag along as she, an editor (Stephen McKinley Henderson) and a reporter (Wagner Moura) make the dangerous journey to Washington, D.C., to interview the president (Nick Offerman), a blustery, rising despot who has given himself a third term, taken to attacking his citizens and shut himself off from the press. In my review, I called it a bellowing and haunting experience; Smart and thought-provoking with great performances. It’s well worth a watch.
— Joey King stars in Netflix’s adaptation of Scott Westerfeld’s “Uglies,” about a future society in which everyone is required to have beautifying cosmetic surgery at age 16. Streaming on Friday, McG directed the film, in which King’s character inadvertently finds herself in the midst of an uprising against the status quo. “Outer Banks” star Chase Stokes plays King’s best friend.
— Bill Skarsgård is out for revenge against the woman (Famke Janssen) who killed his family in “Boy Kills World,” coming to Hulu on Friday. Moritz Mohr directed the ultra-violent film, of which Variety critic Owen Gleiberman wrote: “It’s a depraved vision, yet I got caught up in its kick-ass revenge-horror pizzazz, its disreputable commitment to what it was doing.”
NEW MUSIC TO STREAM SEPT. 9-15
— The year was 2006. Snow Patrol, the Northern Irish-Scottish alternative rock band, released an album, “Eyes Open,” producing the biggest hit of their career: “Chasing Cars.” A lot has happened in the time since — three, soon to be four quality full-length albums, to be exact. On Friday, the band will release “The Forest Is the Path,” their first new album in seven years. Anthemic pop-rock is the name of the game across songs of love and loss, like “All,”“The Beginning” and “This Is the Sound Of Your Voice.”
— For fans of raucous guitar music, Jordan Peele’s 2022 sci-fi thriller, “NOPE,” provided a surprising, if tiny, thrill. One of the leads, Emerald “Em” Haywood portrayed by Keke Palmer, rocks a Jesus Lizard shirt. (Also featured through the film: Rage Against the Machine, Wipers, Mr Bungle, Butthole Surfers and Earth band shirts.) The Austin noise rock band are a less than obvious pick, having been signed to the legendary Touch and Go Records and having stopped releasing new albums in 1998. That changes on Friday the 13th, when “Rack” arrives. And for those curious: The Jesus Lizard’s intensity never went away.
— AP Music Writer Maria Sherman
NEW SHOWS TO STREAM SEPT. 9-15
— Hallmark launched a streaming service called Hallmark+ on Tuesday with two new original series, the scripted drama “The Chicken Sisters” and unscripted series “Celebrations with Lacey Chabert.” If you’re a Hallmark holiday movies fan, you know Chabert. She’s starred in more than 30 of their films and many are holiday themed. Off camera, Chabert has a passion for throwing parties and entertaining. In “Celebrations,” deserving people are surprised with a bash in their honor — planned with Chabert’s help. “The Chicken Sisters” stars Schuyler Fisk, Wendie Malick and Lea Thompson in a show about employees at rival chicken restaurants in a small town. The eight-episode series is based on a novel of the same name.
— Natasha Rothwell of “Insecure” and “The White Lotus” fame created and stars in a new heartfelt comedy for Hulu called “How to Die Alone.” She plays Mel, a broke, go-along-to-get-along, single, airport employee who, after a near-death experience, makes the conscious decision to take risks and pursue her dreams. Rothwell has been working on the series for the past eight years and described it to The AP as “the most vulnerable piece of art I’ve ever put into the world.” Like Mel, Rothwell had to learn to bet on herself to make the show she wanted to make. “In the Venn diagram of me and Mel, there’s significant overlap,” said Rothwell. It premieres Friday on Hulu.
— Shailene Woodley, DeWanda Wise and Betty Gilpin star in a new drama for Starz called “Three Women,” about entrepreneur Sloane, homemaker Lina and student Maggie who are each stepping into their power and making life-changing decisions. They’re interviewed by a writer named Gia (Woodley.) The series is based on a 2019 best-selling book of the same name by Lisa Taddeo. “Three Women” premieres Friday on Starz.
— Sylvester Stallone’s second season of “Tulsa King” debuts Sunday on Paramount+. Stallone plays Dwight Manfredi, a mafia boss who was recently released from prison after serving 25 years. He’s sent to Tulsa to set up a new crime syndicate. The series is created by Taylor Sheridan of “Yellowstone” fame.
NEW VIDEO GAMES TO PLAY
— One thing about the title of Focus Entertainment’s Warhammer 40,000: Space Marine 2 — you know exactly what you’re in for. You are Demetrian Titus, a genetically enhanced brute sent into battle against the Tyranids, an insectoid species with an insatiable craving for human flesh. You have a rocket-powered suit of armor and an arsenal of ridiculous weapons like the “Chainsword,” the “Thunderhammer” and the “Melta Rifle,” so what could go wrong? Besides the squishy single-player mode, there are cooperative missions and six-vs.-six free-for-alls. You can suit up now on PlayStation 5, Xbox X/S or PC.
— Likewise, Wild Bastards isn’t exactly the kind of title that’s going to attract fans of, say, Animal Crossing. It’s another sci-fi shooter, but the protagonists are a gang of 13 varmints — aliens and androids included — who are on the run from the law. Each outlaw has a distinctive set of weapons and special powers: Sarge, for example, is a robot with horse genes, while Billy the Squid is … well, you get the idea. Australian studio Blue Manchu developed the 2019 cult hit Void Bastards, and this Wild-West-in-space spinoff has the same snarky humor and vibrant, neon-drenched cartoon look. Saddle up on PlayStation 5, Xbox X/S, Nintendo Switch or PC.
Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.
Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.
Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.
Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.
Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.
Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.
Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.
As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.
Cochise County, AZ — Law enforcement officials in Arizona have apprehended Ronald Lee Syvrud, a 66-year-old resident of Cochise County, after a manhunt was launched following alleged death threats he made against former President Donald Trump. The threats reportedly surfaced in social media posts over the past two weeks, as Trump visited the US-Mexico border in Cochise County on Thursday.
Syvrud, who hails from Benson, Arizona, located about 50 miles southeast of Tucson, was captured by the Cochise County Sheriff’s Office on Thursday afternoon. The Sheriff’s Office confirmed his arrest, stating, “This subject has been taken into custody without incident.”
In addition to the alleged threats against Trump, Syvrud is wanted for multiple offences, including failure to register as a sex offender. He also faces several warrants in both Wisconsin and Arizona, including charges for driving under the influence and a felony hit-and-run.
The timing of the arrest coincided with Trump’s visit to Cochise County, where he toured the US-Mexico border. During his visit, Trump addressed the ongoing border issues and criticized his political rival, Democratic presidential nominee Kamala Harris, for what he described as lax immigration policies. When asked by reporters about the ongoing manhunt for Syvrud, Trump responded, “No, I have not heard that, but I am not that surprised and the reason is because I want to do things that are very bad for the bad guys.”
This incident marks the latest in a series of threats against political figures during the current election cycle. Just earlier this month, a 66-year-old Virginia man was arrested on suspicion of making death threats against Vice President Kamala Harris and other public officials.
Armstrong scores, surging Vancouver Whitecaps beat slumping San Jose Earthquakes 2-0
As plant-based milk becomes more popular, brands look for new ways to compete
Labour Minister praises Air Canada, pilots union for avoiding disruptive strike
Nova Scotia premier repeats calls for Ottawa to pay for protecting Chignecto Isthmus
Emir of Qatar to visit Ottawa on what will be his first official trip to Canada
TIFF audience prizes for ‘Life of Chuck,’ Hip doc; Rankin among Canadian winners
Looking for the next mystery bestseller? This crime bookstore can solve the case
Inflation expected to ease to 2.1%, lowest level since March 2021: economists
