New rule will come into force in March

The Canadian Securities Administrators is adopting policy amendments to harmonize issuers’ prospectus requirements.

The purpose of the new instrument, National Instrument 41-101 General Prospectus Requirements. is to create a comprehensive, seamless and transparent set of national prospectus requirements for all issuers including investment funds, other than mutual funds.

NI 41-101 is based on three general principles: to harmonize and consolidate the general prospectus requirements among Canadian jurisdictions; to substantially harmonize the prospectus requirements with the continuous disclosure and short form prospectus disclosure regimes; and, it takes into consideration changes in the principles underlying the prospectus requirements that regulators have identified as a result of regulatory reviews, applications for exemptive relief, or public comment and consultation.

On Dec. 21, 2006, the rule and amendments were published for comment. The comment period ended on March 31. The CSA received submissions from 56 commenters, but didn’t make any material changes as a result. Provided all necessary ministerial approvals are obtained, the new rule and other amendments will come into force on March 17, 2008.