The Canadian Securities Administrators (CSA) have taken the first steps to replace the current range of electronic records filing systems used In Canada’s capital markets.
The CSA is proposing to replace the System for Electronic Document Analysis and Retrieval (SEDAR), the System for Electronic Disclosure by Insiders (SEDI), the National Registration Database (NRD), and various local records filing systems with a new, more user-friendly integrated national information and filing system (the Renewed System).
The Renewed System will be rolled out in stages. The first stage, with a planned launch date in early 2021, will replace issuer-related systems and filings: SEDAR, the National Cease Trade Order Database, the Disciplined List, and certain filings made in paper format or in local electronic filing systems. Later stages will see the replacement of SEDI, NRD, the National Registration Search, and the remaining filings in local systems.
In order to prepare for the Renewed System, the CSA published on May 2, 2019 two notices for comment for a period ending July 31, 2019:
- Multilateral Instrument 13-102 System Fees for SEDAR and NRD, which proposes a fee flat structure for the New System. This would reflect the New System’s operating cost while allowing for future enhancements and reducing the administrative burden for market participants;
- National Instrument 13-103 [System Replacement Rule], discusses proposed changed filing requirements under the Renewed System. These new requirements would require filers to electronically transmit all documents to securities regulators through the new system, subject to certain exemptions. The exemptions include:
- Documents delivered in connection with a hearing, compliance review or investigation, or certain documents that are filed infrequently; and,
- Certain documents that would be required to be filed or delivered via the Renewed System in future phases of the project.
The CSA expects to propose further changes to National Instrument 13-103 [System Replacement Rule] as future phases of the Renewed System are rolled out and will publish updates accordingly.
Multilateral Instrument 13-102 System Fees for SEDAR and NRD, is available for download from the website of the participating jurisdictions. National Instrument 13-103 [System Replacement Rule], is available for download from the website of the participating jurisdictions.
For more information, please call Barbara Hendrickson at BAX Securities Law (416) 601 -1004.
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.
