The Canadian Securities Administrators (CSA) today published for comment proposed amendments that would streamline disclosure by venture issuers.
“These proposed amendments are designed to streamline disclosure requirements so that venture issuers can focus more on the growth of their businesses,” says Bill Rice, chair of the CSA and Chair and CEO of the ASC. “They will also focus disclosure on information that reflects the needs and expectations of investors and eliminate disclosure that may be less valuable to investors.”
The proposals address continuous disclosure and governance obligations, as well as disclosure for prospectus offerings.
In particular, the proposed amendments would:
- allow the requirement for management’s discussion and analysis for interim financial periods to be satisfied by a streamlined and highly focused report on quarterly highlights, if the venture issuer does not have significant revenue;
- implement a new tailored form of executive compensation disclosure;
- reduce the instances in which a business acquisition report must be filed;
- create a new requirement for audit committees to have a majority of independent members; and
- amend the prospectus disclosure requirements to reduce the number of years of audited financial statements required for venture issuers becoming reporting issuers and to conform the prospectus disclosure requirements to the proposed amendments related to continuous disclosure.
The CSA notice and the proposed amendments are available on CSA members’ websites. The comment period is open until August 20, 2014.