Canadian securities regulators seek comment on proposal to streamline continuous disclosure requirements

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May 20, 2021

On May 20, 2021, the Canadian Securities Administrators (CSA) proposed changes to the continuous disclosure requirements for non-investment fund reporting issuers that will streamline and clarify their annual and interim filings. Comments are requested by September 17, 2021.

The proposed amendments:

  • Streamline and clarify certain disclosure requirements in the management’s discussion and analysis (MD&A) and the annual information form (AIF) for non-investment fund reporting issuers.
  • Eliminate certain requirements that are redundant or no longer applicable.
  • Combine the financial statements, MD&A and, where applicable, AIF into one reporting document called the annual disclosure statement for annual reporting purposes, and the interim disclosure statement for interim reporting purposes.
  • Introduce a small number of new requirements to address gaps in disclosure.

The proposed amendments reflect comments received in response to CSA Consultation Paper 51-404 Considerations for Reducing Regulatory Burden for Non-Investment Fund Reporting Issuers. They also reflect research on comparable requirements in other countries and other stakeholder feedback about disclosure requirements in annual and interim filings.

The CSA is also consulting on a proposed framework for semi-annual reporting on a limited basis. The framework would allow venture issuers that are not SEC issuers the choice of reporting on a semi-annual rather than a quarterly basis. Alternative disclosure would be required for interim periods where financial statements and MD&A would not be filed. While no rule is being published for comment at the present time, the CSA is soliciting public comment on whether rules consistent with the proposed framework could further reduce regulatory burden for these issuers while still providing investors with adequate information to make informed decisions.

Review the press release and proposed amendments on the OSC's website.

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