(January 28 – 09:30 ET) – The Canadian Securities Administrators are proposing a new integrated disclosure system that could provide companies with fast, flexible access to capital markets, and investors with timely, relevant information. The CSA released its proposal this morning and is seeking comments.
The new system could dramatically modify disclosure requirements in Canada. It proposes to introduce: a streamlined prospectus, rules governing new offerings would also be slimmed down, rules against pre-marketing communications would be relaxed too.
At the same time, the new regime would increase the requirements for periodic disclosure by IDS (Integrated Disclosure System) companies, establish a prohibition on misleading marketing activities, and companies will be responsibile for marketing material.
“The IDS is a significant step forward in meeting our dual objectives of protecting investors and enhancing the efficiency and effectiveness of Canadian capital markets,” said CSA chair Douglas Hyndman. “We think it will significantly streamline the process companies go through to raise capital while offering investors better and more timely information.”
The CSA specifies a number of specific issues on which comment is sought. The comment period closes June 1st. Copies are available at the websites of the B.C., Alberta, Ontario, Québec and Manitoba securities commissions.
-IE Staff