On May 20, 2021, the Canadian Securities Administrators (CSA) published changes to the continuous disclosure requirements for non-investment fund reporting issuers.

The proposed amendments:

  • Streamline and clarify certain disclosure requirements in the management’s discussion and analysis (MD&A) and the annual information form (AIF) for non-investment fund reporting issuers.
  • Eliminate certain requirements that are redundant or no longer applicable.
  • Combine the financial statements, MD&A and, where applicable, AIF into one reporting document called the annual disclosure statement for annual reporting purposes, and the interim disclosure statement for interim reporting purposes.
  • Introduce a small number of new requirements to address gaps in disclosure.

The CSA is also consulting on a proposed framework for semi-annual reporting on a limited basis. The framework would allow venture issuers that are not SEC issuers the choice of reporting on a semi-annual rather than a quarterly basis. Alternative disclosure would be required for interim periods where financial statements and MD&A would not be filed. While no rule is being published for comment at the present time, the CSA is soliciting public comment on whether rules consistent with the proposed framework could further reduce regulatory burden for these issuers while still providing investors with adequate information to make informed decisions.

Please see the media release at https://www.bcsc.bc.ca/-/media/PWS/New-Resources/Securities-Law/Instruments-and-Policies/Policy-5/51102-CSA-Notice-and-Request-for-Comment-May-20-2021.pdf.

For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.

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