The Canadian Securities Administrators (CSA) issued new guidance on Thursday in relation to its new exempt-distribution reports in a bid to alleviate concerns from institutional investors and foreign dealers that has reportedly prevented investors from participating in certain foreign deals.
The CSA’s revised guidance, which was published in a staff notice, is designed to address the unintended effects of new requirements that came into effect with the overhaul of exempt-distribution reports in April.
Amid concerns about the certification requirements in the new reports, Canadian institutional investors were being excluded from foreign offerings “as a result of a perceived change in the risk of personal liability,” in addition to the increased disclosure requirements in the new reports, according to the CSA’s notice.
The CSA attempted to address these concerns by providing certain regulatory relief in the summer. However, the CSA indicates in its new notice that these issues haven’t been resolved, “creating unintended complications in respect of access by institutional investors to foreign investment opportunities.”
Thus, the CSA’s new guidance aims to address the ongoing concerns about certification requirements, and other issues. The CSA also indicates that it’s prepared to consider additional steps to deal with these concerns.
“This revised guidance supplements steps that the CSA have already taken to respond to concerns raised about the report,” says Louis Morisset, chairman of the CSA and president and CEO of the Autorité des marchés financiers, in a statement. “We continue to seek input on these issues and consider what further steps might be appropriate.”