CSA announces results of continuous disclosure reviews

The Canadian Securities Administrators (CSA) today published Staff Notice 51-339 Continuous Disclosure Review Program Activities for the fiscal year ended March 31, 2013, which summarizes the results of the CSA’s continuous disclosure (CD) review program.

There are approximately 4,200 active reporting issuers in Canada (excluding investment funds). These issuers are subject to regular full and issue-oriented reviews as part of the CSA’s ongoing CD review program.

Read: Disclosure is broken: CSA best interest roundtable

The Notice includes detailed examples of common deficiencies the CSA identified during its review of financial statements, Management’s Discussion and Analysis (MD&A) and other regulatory disclosure. It also provides reporting issuers with practical guidance and suggestions for improving their disclosure.

The CSA members completed 1,336 CD reviews in fiscal 2013 (368 full reviews and 968 issue-oriented reviews), a 7% increase compared to 1,248 reviews completed during fiscal 2012. The increased number of reviews this year reflects a slightly greater emphasis on issue-oriented reviews. The outcomes of this year’s reviews are as follows:

• 2% of the reviews resulted in reporting issuers being alerted to specific areas where disclosure enhancements should be considered as part of the CSA’s effort to educate issuers;
• 5% of issuers were either cease-traded, placed on a default list or referred to enforcement;
• 14% of the reviews resulted in reporting issuers being required to amend or re-file certain CD documents;
• 26% of the reviews resulted in “prospective changes,” requiring reporting issuers to make enhancements to their disclosure in future filings; and
• 53% of issuers were not required to make any changes or additional filings.

CSA Staff Notice 51-339 is available on various CSA members’ websites.

Also read:

CSA publishes guidance on relationship disclosure

CSA requirements to improve disclosure now in effect

4 upcoming regulatory proposals

Staff

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