The CSA announced today that they are no longer pursuing the implementation of a proposed new regulatory regime for venture issuers.
Proposed National Instrument 51-103 would have resulted in a separate regulatory regime for venture issuers which, while intended to be more tailored and streamlined, would have resulted in a comprehensive overhaul of applicable prospectus and private placement requirements, as well as continuous disclosure and governance obligations. We previously discussed the proposed versions of NI 51-103 in September 2011 and September 2012.
The CSA’s decision to abandon the proposal was reportedly affected by, among things, concerns expressed by commenters on the burden it would impose on venture issuers in terms of transition to a new regime, and the proposed new disclosure obligations such as the proposed mandatory annual report.
Venture issuers can thus rest assured that they will not have to contend with any such changes to applicable regulatory obligations for the time being. However, the CSA have also stated that certain proposals contained in the proposed National Instrument 51-103 may be added to the existing regulatory regime for venture issuers. Any such potential amendments would only be implemented following a further comment and review process and would, therefore, not be implemented in the short term. Whether the CSA will pursue such amendments also remains to be seen.
For more information, see CSA Notice 51-340