OSC releases results of FLI disclosure review

The Ontario Securities Commission (OSC) today published OSC Staff Notice 51-721 Forward-Looking Information Disclosure, which sets out the results of the OSC’s forward-looking information (FLI) disclosure review and provides further guidance on complying with existing FLI disclosure requirements.

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Compliance with FLI disclosure requirements is vital, as the information provided within the FLI enhances transparency for investors and helps them better understand a reporting issuer’s business and future prospects. The information outlined in the Notice published today should be used as an instructive aid for reporting issuers to assist them in complying with their disclosure obligations.

In conducting the review, the OSC assessed 60 reporting issuers on their compliance with FLI disclosure requirements, under National Instrument 51-102 Continuous Disclosure Obligations. The results of the review highlight the areas in which many reporting issuers require improvement in terms of disclosure compliance and sets out the expectation of prompt corrective action where necessary. Additionally, the Notice provides guidance and examples to assist reporting issuers in preparing FLI and reminds the audit committee and board of directors of their role in the dissemination of timely and transparent information to investors.

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Specifically, the Notice provides guidance in the following areas:

• clear identification of FLI;
• disclosure of the material factors and assumptions used to develop FLI;
• updating previously disclosed FLI;
• comparison of actual results to the future oriented financial information (FOFI) of financial outlook previously disclosed; and,
• The role of the audit committee and board of directors in the review of FLI.

OSC Staff Notice 51-721 can be found on the OSC’s website at www.osc.gov.on.ca

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Staff

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