Canadian securities regulators are proposing to loosen restrictions on the marketing that firms are allowed to do before and during an offering.
The Canadian Securities Administrators Friday published for comment proposed amendments to the prospectus rules today that would increase the range of permissible ‘pre-marketing’ and ‘marketing’ activities that can be used in connection with prospectus offerings.
The proposed amendments would: allow non-reporting issuers to determine interest in a potential initial public offering by communicating with permitted institutional investors through an investment dealer; allow investment dealers to use term sheets and conduct road shows during the ‘waiting period’ and following the filing of a final prospectus; and, clarify when bought deals and bought deal syndicates can be enlarged.
“The proposed amendments are designed to ease certain regulatory burdens and restrictions that issuers and investment dealers face in trying to complete a prospectus offering, while at the same time providing protection to investors,” said Bill Rice, chair of the CSA and chair and CEO of the Alberta Securities Commission. “The amendments also aim to clarify certain matters to provide clear rules and a level playing field for market participants.”
The CSA is seeking comments on the proposals by February 23, 2012.