CSA adopts amendments to early warning system

By Staff | February 25, 2016 | Last updated on February 25, 2016
1 min read

The CSA has announced the publication of final amendments that are designed to provide greater transparency about holdings of reporting issuers’ securities under the early warning system.

Read: Fines, admin penalties from CSA top $138M in 2015

Once in effect, the amendments will, among other things:

• require disclosure of decreases in ownership, control or direction of 2% or more for security-holders subject to reporting;

• require disclosure when a security-holder’s ownership, control or direction falls below the early warning reporting threshold of 10%;

• exempt lenders and borrowers, in certain circumstances, from including the securities lent or borrowed for the purposes of determining the early warning reporting threshold trigger;

• make the alternative monthly reporting system unavailable to eligible institutional investors who solicit proxies from security holders in certain circumstances;

• enhance the disclosure in the early warning report; and

• further streamline the information required in a news release. Except in Ontario, provided all necessary Ministerial approvals are obtained, the amendments will come into force on May 9, 2016. In Ontario, the amendments will come into force on the later of (a) May 9, 2016, and (b) the day on which certain sections of Schedule 18 of the Budget Measures Act, 2015 (Ontario) are proclaimed into force. A copy of the amendments can be found on CSA members’ websites.

Also read:

IIROC reveals 2016 compliance priorities

CSA floats new national instrument targeting derivatives

Advisor.ca staff

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.