CSA won’t rein in venture issuers

The Canadian Securities Administrators won’t implement a new tailored regulatory regime for venture issuers.

Until now, the regulator was proposing national instrument 51-103, which aimed to introduce ongoing governance and disclosure requirements for venture issuers. The CSA wanted to streamline the group’s disclosure requirements so they reflected the needs of their investors.

The regulator also intended to make disclosure requirements more suitable and manageable for venture issuers at certain stages of development.

But market participants raised significant concerns about the burden of transitioning to a new regime, which required mandatory annual reporting, among other measures. After reviewing the comments received and further consideration, the CSA plans to drop the proposed rules.

However, it’s considering implementing some of the measures within proposed NI 51-103. These will simply amend the existing regulatory regime for venture issuers. Any resulting proposed amendments would be published for comment.

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Staff

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