Regulators to change venture issuer rules

The CSA has published revamped proposed changes to National Instrument 51-103, which regards governance and disclosure requirements for venture issuers.

It was originally published for comment in July 2011. But, after input from market participants, the CSA has decided to change certain aspects of the previous proposal.

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It’s tweaked the interim reporting requirements; rather than requiring interim reporting at mid-year, the CSA now proposes reporting at the three, six and nine-month periods. Reports would include financial statements and a short discussion of the venture issuer’s operations and liquidity.

NI 51-103 also introduces a proposed new tailored regulatory regime for venture issuer that’s intended to streamline venture issuer disclosure. Issuers need to focus on the needs and expectations of investors.

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

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“As regulators, we recognize the importance of the venture market in Canada’s capital markets, and strive to balance promote efficiency within the capital markets while also ensuring investors receive the information they need to make informed decisions,” says Bill Rice, chair of the CSA, and chair and CEO of the Alberta Securities Commission.

The CSA is seeking written comments from investors and industry on proposed NI 51-103 and related amendments. To comment, please refer to the CSA notice of republication and request for comment regarding proposed national Instrument 51-103 and related amendments.

The comment period is open until December 12, 2012.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.