The Canadian Securities Administrators today published proposed amendments to National Instrument 41-101 General Prospectus Requirements, NI 44-101 Short Form Prospectus Distributions, NI 44-102 Shelf Distributions, NI 81-101 Mutual Fund Prospectus Disclosure and related policies and consequential amendments. The stated purpose of the proposals are to "address user experience and the CSA's experience" with the prospectus rules since the implementation of NI 41-101 in March 2008. The proposed changes include those targeted at all issuers and others targeted only at investment funds.
Accordingly, the proposed amendments to the rules are intended to, among other things, clarify provisions of the prospectus rules, address gaps that have been identified, streamline certain requirements that have proven burdensome for issuers and codify prospectus relief that has been granted. Changes are proposed to, among other things, requirements for filing personal information forms (PIFs), guidance on when contractual rights of rescission may be required in respect of securities underlying convertible, exchangeable or exercisable securities and clarification regarding historical financial statements disclosure for primary businesses or predecessor entities.
Comments on the proposals are being accepted until October 14.