CSA amends rules for exempt distribution reports

CSA published its final amendments to rules around prospectus exemptions and filing exempt distribution reports, introducing changes intended to clarify and streamline the requirements, the regulator said Thursday.

The changes will affect issuers and underwriters who rely on prospectus exemptions to distribute securities. Prospectus exemptions allow securities to be offered without a prospectus in order to help a company raise money without the time and expense of preparing one.

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“The revisions are primarily intended to address concerns expressed by foreign dealers conducting offerings into Canada and Canadian institutional investors about the unintended effects of the certification requirement and other information requirements in the report on these offerings,” the notice of amendment says.

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CSA published final amendments to National Instrument 45-106 Prospectus Exemptions, which revise Form 45-106F1 Report of Exempt Distribution, and made a related change to Companion Policy 45-106CP Prospectus Exemptions.

To reflect the changes, the regulator also revised CSA Staff Notice 45-308 (Revised) Guidance for Preparing and Filing Reports of Exempt Distribution under National Instrument 45-106 Prospectus Exemptions.

The amendments will come into force on Oct. 5, provided the necessary ministerial approvals are obtained, a release said.

Read the notice of amendments here.

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Staff

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