The Canadian Securities Administrators implemented its new national policy on disclosure standards on Friday.

The policy sets out issuers’ timely disclosure obligations and provides guidance on how to avoid selective disclosure. The policy differs somewhat from the one published on May 25, 2001, but the differences are not material, regulators say.

The policy has been adopted to address concerns about the practice of selective disclosure. It does not introduce new law in this area, as existing Canadian legislation on tipping already prohibits selective disclosure. Instead, it aims to ensure that investors have equal access to important information that may affect their investment decisions; and to help companies to navigate between business pressures and legislative requirements.

The policy describes timely disclosure obligations for reporting companies; provides interpretive guidance on existing legislative prohibitions against selective disclosure; highlights risky disclosure practices; gives examples of the types of information likely to be material under securities legislation; and, lists some best disclosure practices.

It also reminds issuers that compliance with U.S. rules, such as Regulation FD, does not necessarily ensure compliance with Canadian rules in this area.

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