On April 6,2017, the Canadian Securities Administrators (CSA) released CSA Consultation Paper 51-404 Considerations for Reducing Regulatory Burden for Non-Investment Fund Reporting Issuers (Consultation Paper 51-404). The purpose of Consultation Paper 51-404 is to consider certain legal requirements where the CSA believes there may be ways to reduce the costs and burdens of regulatory requirements applicable to ongoing reporting and capital raising transactions for reporting issuers in the public markets (other than investment funds). In particular, the CSA is seeking public input to pinpoint legal requirements where undue regulatory burden can be eliminated without diminishing investor protection. The CSA will be accepting feedback from the public until July 7, 2017.

Some of the options being evaluated are:

  • expanding the application of streamlined rules for smaller reporting issuers, including expanding the scope of the rules that currently apply only to issuers that are listed on certain “junior” stock exchanges;
  • reducing the regulatory burden associated with prospectus rules and the offering process, including eliminating certain prospectus form requirements and historical financial statement requirements, as well as changing the rules applicable to At-The-Market (ATM) distributions;
  • reducing certain ongoing continuous disclosure requirements, including potentially moving to semi-annual financial reporting from quarterly reporting;
  • eliminating overlap in potentially duplicative regulatory requirements; and
  • enhancing the ability to deliver documents electronically.