Canadian securities administrators publish final amendments to syndicated mortgage regime

TORONTO, Aug. 6, 2020 /CNW/ - The Canadian Securities Administrators (CSA) today published final amendments that substantially harmonize the regulatory framework for syndicated mortgages in Canada.

These final amendments will:

• remove the prospectus and registration exemptions that currently apply to syndicated mortgages in certain jurisdictions to substantially harmonize the regulatory framework for distributions of syndicated mortgages in Canada,
• enhance investor disclosure through revisions to the offering memorandum prospectus exemption for offerings of syndicated mortgages under that exemption, and
• exclude syndicated mortgages from the private issuer exemption, ensuring they are offered under an exemption more appropriate for this type of security.

"These changes substantially harmonize the regulatory framework for syndicated mortgages in Canada, enhancing investors' ability to make informed decisions about these investments and enabling registrants who distribute these products to better fulfil their obligations," said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers.

The CSA first published proposed changes to the syndicated mortgage regime in 2018 and conducted two comment periods to gather feedback.

Due to the effects of the COVID-19 pandemic, to allow time for stakeholders to implement the changes, the final amendments will come into effect on March 1, 2021.

As part of the Notice published today, certain jurisdictions are publishing material regarding local exemptions for qualified syndicated mortgages and for syndicated mortgages distributed to permitted clients or institutional investors. These publications can be found on the applicable jurisdiction's website.

The websites of CSA members contain the CSA Notice, which outlines the amendments made to National Instrument 45-106 Prospectus Exemptions and National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations, as well the accompanying companion policies, and any local amendments.

The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

For Investor inquiries, please refer to your respective securities regulator. You can contact them here. 

For media inquiries, please refer to the list of provincial and territorial representatives below or contact us at [email protected].

For more information:                                                                                                                     

Kristen Rose  Ontario Securities Commission 416-593-2336	Hilary McMeekin Alberta Securities Commission  403-592-8186
Sylvain Théberge Autorité des marchés financiers  514-940-2176	Jason (Jay) Booth Manitoba Securities Commission 204-945-1660
Briann Kladko   British Columbia Securities Commission 604-899-6713	Steve Dowling Superintendent of Securities, Department of  Justice and Public Safety, Prince Edward Island  902 368-4550
Sara Wilson   Financial and Consumer Services Commission, New Brunswick    506-643-7045	David Harrison Nova Scotia Securities Commission  902-424-8586
Renée Dyer  Office of the Superintendent of Securities,  Service NL    709-729-4909	Rhonda Horte Office of the Yukon Superintendent of Securities        867-667-5466
Jeff Mason   Nunavut Securities Office 867-975-6591	Tom Hall Northwest Territories       Office of the Superintendent of Securities 867-767-9305
Shannon McMillan Financial and Consumer Affairs Authority of Saskatchewan 306-798-4160

SOURCE Canadian Securities Administrators