The Canadian Securities Administrators is planning a review of issuers’ compliance with new audit committee rules.

A new rule governing audit committees came into force on March 30, 2004 in every jurisdiction in Canada except B.C. and Quebec. (In Quebec, it will come into force once the Minister of Finance approves it.)

With limited exceptions, the rule applies to all reporting issuers. It sets out various requirements regarding the duties and composition of audit committees. These requirements will apply on the issuer’s first annual meeting after July 1, 2004, or July 1, 2005, whichever comes earlier.

In a notice, the CSA says that staff from various jurisdictions will soon be conducting a compliance review of a sample of issuers. This review will focus on each issuer’s compliance with the rule’s requirements regarding audit committee composition and responsibilities. CSA staff will contact issuers that have been selected for this review.

Regulators say they will publish the results of this review upon its completion.