CSA keeps status quo on director independence

CSA will keep its current approach to determining director and audit committee member independence, the regulator said Thursday.

“CSA Staff Notice 52-330 Update on CSA Consultation Paper 52-404 Approach to Director and Audit Committee Member Independence” summarizes the feedback received about the regulator’s approach to determining the independence of directors and audit committee members. It also explains CSA’s reasons for keeping the current approach.

The consultation launched last October and comments were accepted until Jan. 25.

Read: CSA to examine director and audit committee independence

Twenty-seven comments were received from stakeholders including investors, investor advocacy groups, issuers, national organizations representing corporate directors and law firms, the CSA said.

“Overall, most commenters expressed general support for our current approach and there were no common trends or views in respect of suggested changes,” the regulator said.

Some commenters considered the current approach inflexible and restrictive, preventing valid candidates from serving as directors or audit committee members, the report said. Others suggested reassessing bright line tests and giving boards more discretion in determining independence.

Read the notice here.

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How CSA’s ‘detailed and sweeping’ proposals will affect you: IIAC

Staff

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