CSA pulls back on boosting early warning reporting

CSA has published CSA Notice 62-307, which is an update on proposed amendments to:

• Multilateral Instrument 62-104 Take-Over Bids and Issuer Bids;
• National Instrument 62-103 Early Warning System and Related Take-Over Bid and Insider Reporting Issue; and
• National Policy 62-203 Take-Over Bids and Issuer Bids (also called CSA Notice 62-307).

The update provides detail on the status of proposed amendments to the early warning reporting regime in Canada.

Following the publication of the original draft amendments on March 13, 2013, the CSA received more than 70 comment letters from various market participants. The commenters generally agreed with the enhanced transparency objective of the CSA proposals, but a majority of commenters raised various concerns about some aspects of the proposed amendments.

So, “based on comments received and our further consideration, we have decided not to proceed with certain of the draft amendments, including the lower early warning reporting threshold of 5%,” says Bill Rice, chair of the CSA, and chair and CEO of the Alberta Securities Commission.

Still, “the final amendments, while not as extensive as the 2013 CSA proposals, are intended to address certain key issues and enhance the quality and integrity of the early warning reporting regime in a manner that is appropriate for the Canadian capital markets.”

Subject to receipt of necessary approvals, the CSA intend to publish the final amendments in Q2 2015.

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