(January 11 – 13:40 ET) – The Investment Dealers Association is reminding its members that new rules are now in effect governing disclosure and providing other guidelines for fairness opinions and formal valuations.

Last year the Ontario Securities Commission approved new IDA rules, which were approved by its board back in April 1997. The rules prescribe disclosure requirements and give guidelines for formal valuations and fairness opinions prepared by brokerage firms in connection with certain transactions, such as insider bids, issuer bids and going private deals.

The rules require firms to disclose their experience and qualifications, the fee they receive for an opinion, a description of the relationship between the firm and the client, including any connections that may affect the valuator’s independence, and the contents of the valuation itself.

The IDA reminds its members to refer to these new rules when preparing opinions.
-IE Staff