By The Book: New prospectus rule takes effect Monday

(March 13, 2008) Canadian securities regulation will become a little more streamlined next week, as National Instrument 41-101 General Prospectus Requirements will come into force on March 17, 2008.

“NI 41-101 will make it easier for issuers to distribute securities across Canada by establishing one standard set of national prospectus rules,” said Jean St-Gelais, chair of the CSA and president and CEO of Autorité des marchés financiers (Québec). “The new rule will maintain a high level of disclosure to investors while reducing costs for issuers wishing to offer securities in more than one jurisdiction.”

The new rule will streamline the general prospectus requirements as well as continuous disclosure and short-form prospectus disclosure regimes.

Harmonizing prospectus requirements is part of the overall effort to streamline Canada’s fractured regulatory environment. National Instrument 41-101 comes into force at the same time as Multilateral Instrument 11-102 Passport System. Ontario is the only jurisdiction that has not signed on to the passport system, but firms and individuals who are registered with the OSC will be recognized in the rest of the provinces.

(03/13/08)

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