The Ontario Securities Commission has established an Internet-based List of Defaulting Reporting Issuers. The OSC says the list is meant to “facilitate greater transparency and improve access to continuous disclosure information.”
As required by Ontario securities law, all reporting issuers are required to file continuous and timely disclosure of material information regarding their activities, including filing documents with securities regulators.
Under new OSC Policy 51-601, reporting issuers will be placed on the default list if they fail to comply with the following requirements of Ontario securities law:
- Failure to file annual financial statements;
- Failure to file interim financial statements;
- Failure to file an Annual Information Form;
- Failure to file MD&A;
- Failure to file proxy material, information circular or Form 28;
- Failure to pay fees; or
- Filing continuous disclosure documents that contain a significant deficiency.
“By keeping capital markets participants better informed of defaults, this new and effective mechanism will enhance confidence in the commission’s practices and processes to promote continuous disclosure and foster fair and efficient capital markets,” said John Hughes, manager of the OSC’s Continuous Disclosure Team.
The list of defaulting reporting issuers will be updated on a weekly basis.
Although every effort will be made to ensure the list is complete and accurate, users are advised to obtain a Certificate of No-Default under section 72(8) of the Securities Act (Ontario) if they require a definitive statement as to whether OSC’s records indicate that a reporting issuer is in default.