The Canadian Securities Administrators is streamlining the short form prospectus system to more fully integrate the disclosure systems for the primary and secondary markets and to address deficiencies and ambiguities in the current rules.

The CSA says the changes are designed to allow issuers to efficiently access the capital markets by depending increasingly on their existing continuous disclosure record.

The new rule National Instrument 44-101 Short Form Prospectus Distributions also broadens access to the short form prospectus system to allow more issuers to benefit from the streamlined system.

The CSA says the proposed changes to the short form prospectus system are now possible given the improvements in continuous disclosure.

As well, advances in technology and the availability of continuous disclosure documents on the System for Electronic Document Analysis and Retrieval have enhanced investors’ access to continuous disclosure documents.

“By harmonizing and integrating the short form prospectus regime with the new continuous disclosure regime, we are creating a universal, seamless, integrated and expedited offering system,” said Jean St-Gelais, chairman of the CSA and of the Autorité des marchés financiers. “The new system can allow issuers to respond more quickly and efficiently to market opportunities without diminishing the information and protection available to investors.”

The new rule will come into effect on December 30, 2005, subject to ministerial approval.

NI 44-101 and all related materials can be found on Web sites of Canadian securities regulators.