Office buildings in Toronto’s financial district

The Canadian Securities Administrators (CSA) announced Thursday that it is amending the rules governing reports of exempt distributions.

The changes are primarily intended to address complaints from institutional investors and foreign dealers that carry out offerings in Canada, about the effect of certain requirements on cross-border deals, the CSA states in a notice of amendments.

“Certain Canadian institutional investors noted that they had been excluded from participating in foreign offerings into Canada,” the notice states, and this was at least partly attributed to CSA reporting requirements introduced in 2016.

Regulators had begun providing relief from certain aspects of the reporting requirements. However, firms continue to have difficulties “creating unintended complications in respect of access by Canadian institutional investors to foreign investment opportunities,” the notice states.

The CSA has adopted today’s amendments to provide “greater clarity and flexibility” in order to address those concerns. The changes are due to take effect on Oct. 5.

The CSA also issued revised guidance that aims to help issuers and their underwriters and advisors comply with the reporting requirements.