The Canadian Securities Administrators is seeking feedback from stakeholders on updating securities legislation for public companies.
Last Thursday July 16, the organization released a consultation paper raising the following issues:
- Whether an amended approach to identifying venture and non-venture issuer status could support proportionate regulation
- Whether some venture issuers can be exempted from certain International Financial Reporting Standards aspects
- Hold periods applicable to reporting issuers’ private placements
- Streamlining and clarifying material change reporting
- How Canada can learn from revisions to fundamental requirements in periodic reporting, capital raising and disclosure in the US
The CSA also called for general input on other possible reforms.
“The CSA continues to explore ways to support a regulatory framework for reporting issuers that facilitates access to capital, supports the competitiveness of Canadian capital markets and balances investor protection,” said Stan Magidson, CSA chair and Alberta Securities Commission CEO, in a statement.
Magidson added that the organization sought to ensure that the country’s securities regulatory environment keeps pace with the dynamic needs of investors, reporting issuers, and market participants.
All aspects of the CSA’s consultation paper will be open to stakeholder feedback for 120 days. The submissions will inform the evaluation of potential new rules or changes to current rules.
Recently, the organization broadened listed issuer financing exemption limits and introduced prospectus exemption for offerings by new reporting issuers. It also offered exemptive relief from certain prospectus and disclosure requirements to drive initial public offerings.
The CSA streamlined capital raising by established issuers by implementing a popular seasoned issuer regime. Moreover, it established an access model for prospectus and continuous disclosure documents and offered exemptions permitting eligible venture issuers to voluntarily adopt a semi-annual financial reporting framework.
According to the CSA, over 10 percent of eligible companies adopted the framework. LIFE also facilitated the raising of considerable new capital.
In June, the organization finalized changes to the principal distributor model for mutual fund securities. It, in conjunction with the Canadian Investment Regulatory Organization, also announced a yearlong delay in the implementation of final amendments to access fee and tick-size rules; the changes are set to take effect on November 1, 2027 instead.