Canada’s Securities Regulators Are Proposing That Internal Controls Be Evaluated In 2008

Canada’s securities regulators are proposing to make the new requirements for internal control over financial reporting for public companies effective for financial years ending on or after June 30, 2008. This deadline is meant to give issuers the necessary lead time to plan and implement their internal control compliance activities. The new requirements—affecting CEO/CFO certification and annual MD&A disclosure—are likely to be published for public comment by the end of March 2007. We expect that under the new requirements

• CEOs and CFOs will have to certify that they have evaluated the effectiveness of the issuer’s internal control over financial reporting as of the end of the financial year, and