The Canadian Securities Administrators is seeking comment on a proposed rule that sets out exemptions from the prospectus and registration requirements.

The proposed national rule consolidates and harmonizes the prospectus and registration exemptions contained in various provincial statutes and national, multilateral and local instruments into a single national instrument.

The CSA says the instrument will, “yield substantial benefits and reduce costs to market participants by harmonizing both the majority of prospectus and registration exemptions currently available across Canada, and the disclosure and filing requirements associated with those exemptions.”

Harmonizing exemptions should result in reduced transaction costs because market participants will no longer need to expend time and money dealing with a collection of exempt distribution regimes and their associated disclosure and filing requirements.