The Canadian Securities Administrators ("CSA") recently provided an update stating they are not proceeding with proposed National Instrument 51-103 Ongoing Governance and Disclosure Requirements for Venture Issuers (the "Instrument"). The proposed Instrument addresses continuous disclosure and governance obligations as well as disclosure for prospectus offerings, and certain exempt offerings that require prescribed disclosure.

In September 2012 the CSA published the Instrument for a second comment period. The comments received by the CSA were overall unsupportive of the Instrument, specifically with respect to the additional burdens that would be placed on venture issuers such as transitioning to a new disclosure regime and increased disclosure obligations.

Although the CSA has decided not to proceed with the Instrument, it is currently considering implementing some of the proposals within the Instrument as amendments within the existing regulatory regime for venture issuers. The CSA will publish any resulting proposed amendments for comment.