The Canadian Securities Administrators is calling on issuers to improve their use of forward-looking information in their financial disclosure.

In a staff notice, the CSA reports that it recently conducted continuous disclosure reviews on the application of the forward-looking information requirements in a rule that came into effect on December 31, 2007. They looked at various documents in the reviews, including annual information forms, Management Discussion and Analyses, news releases and investor presentations.

As a result of the reviews, CSA staff requested a number of issuers to improve their disclosure in future filings, but they did not result in issuers having to re-file documents in order to correct deficiencies.

The notice published today focuses on areas where the CSA found deficiencies, as well as areas where regulators think disclosure of this sort of information can be enhanced, incuding: the identification of forward-looking info; disclosure regarding material risk factors and material factors or assumptions; updating practices; explanation of the purpose of, and cautionary language related to, financial outlook or FOFI; and, disclosure regarding goals or targets. It also discusses the potential impact of the transition to International Financial Reporting Standards on disclosure of future-oriented financial information and “financial outlooks”.

IE