Canadian securities regulators propose changes to streamline venture issuer disclosure

VANCOUVER, May 22, 2014 /CNW/ - The Canadian Securities Administrators (CSA) today published for comment proposed amendments that would streamline disclosure by venture issuers.

"These proposed amendments are designed to streamline disclosure requirements so that venture issuers can focus more on the growth of their businesses," said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission. "They will also focus disclosure on information that reflects the needs and expectations of investors and eliminate disclosure that may be less valuable to investors."

The proposals address continuous disclosure and governance obligations, as well as disclosure for prospectus offerings.

In particular, the proposed amendments would:

• allow the requirement for management's discussion and analysis for interim financial periods to be satisfied by a streamlined and highly focused report on quarterly highlights, if the venture issuer does not have significant revenue;
• implement a new tailored form of executive compensation disclosure;
• reduce the instances in which a business acquisition report must be filed;
• create a new requirement for audit committees to have a majority of independent members; and
• amend the prospectus disclosure requirements to reduce the number of years of audited financial statements required for venture issuers becoming reporting issuers and to conform the prospectus disclosure requirements to the proposed amendments related to continuous disclosure.

The CSA notice and the proposed amendments are available on CSA members' websites. The comment period is open until August 20, 2014.

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

SOURCE: Canadian Securities Administrators

Richard Gilhooley, British Columbia Securities Commission, 604-899-6713; Sylvain Théberge, Autorité des marchés financiers, 514-940-2176; Mark Dickey, Alberta Securities Commission, 403-297-4481; Carolyn Shaw-Rimmington, Ontario Securities Commission, 416-593-2361; Kevan Hannah, Manitoba Securities Commission, 204-945-1513; Wendy Connors-Beckett, Financial and Consumer Services Commission New Brunswick, 506-643-7745; Tanya Wiltshire, Nova Scotia Securities Commission, 902-424-8586; Janice Callbeck, PEI Securities Office, Office of the Attorney General, 902-368-6288; Don Boyles, Financial Services Regulation Div., Newfoundland and Labrador, 709-729-4501; Rhonda Horte, Office of the Yukon Superintendent of securities, 867-667-5466; Louis Arki, Nunavut Securities Office, 867-975-6587; Gary MacDougall, Northwest Territories Securities Office, 867-920-3318; Daniela Machuca, Financial and Consumer Affairs Authority of Saskatchewan, 306-798-4160