The Canadian Securities Administrators is seeking comment on proposed amendments to rules concerning short-form prospectus distributions.

According to the CSA, the amendments will make these rules consistent with new rules which allow financial statements to be prepared using foreign GAAP, and financial statements to be audited using foreign generally accepted auditing standards. These new rules will take effect on March 30, pending ministerial approval.

However, the rules dealing with short-form prospectuses require all financial statements to be prepared using Canadian GAAP. So, the proposed amendments will update the definitions in the rule, and allow firms to use foreign standards in certain circumstances.

The CSA says that the purpose of the proposed amendments is to eliminate inconsistencies with existing rules and increase the number of acceptable accounting principles and auditing standards. “Consequently, the proposed amendments to the Instrument reduce the cost of compliance for issuers and registrants.”

Comments are due by April 29.