Canadian regulators are cutting back on the obligation for dealers to layer on additional made-in-Canada disclosure on top of foreign private placements when they are being sold to sophisticated investors in Canada, the Canadian Securities Administrators (CSA) announced on Thursday.
The CSA is adopting rule amendments that will eliminate the need for investment firms to add a “wrapper” to foreign offerings that are being made to institutional investors in the exempt market.
The CSA has provided exemptive relief from these requirements to dealers in the past, and the rule amendments announced today aim to codify that relief.
“These amendments will reduce the regulatory burden associated with offerings of foreign securities in Canada on a private placement basis and are intended to provide sophisticated investors access to a broader range of investment opportunities,” stated Louis Morisset, chairman of the CSA and president and CEO of the Autorité des marchés financiers (AMF).
Subject to ministerial approval, the amendments will come into effect on Sept. 8.