(January 18 – 17:30 ET) – The Ontario Securities Commission is publishing a discussion paper on the notion of allowing its policy governing trading in junior resource issuers to expire.

The policy (OSC Policy Statement No. 5.2 – Junior Natural Resource Issuers) is scheduled to expire on July 1. The current view of the commission is that a new rule should not be developed to replace the policy and it should be allowed to expire on July 1. The policy regulates the financing and, to some extent, the operations of non-TSE listed junior natural resource reporting issuers in Ontario.

The policy was intended to: curb specific abuses which had been occurring in the junior natural resource capital markets, such as unconscionable commissions being charged by broker-dealers; regulate both arm’s-length and non arm’s-length transactions; provide exemptive relief for share-for-debt issuances and financial assistance from insiders; and regulate disclosure.

The OSC now seems to feel that the majority of these functions are covered off by the CDNX rules, or are no longer relevant. A 90-day comment period is being provided given the pivotal role of the Policy in the regulation of junior natural resource issuers. Interested parties are invited to make written submissions by March 30.
-IE Staff