Canadian Securities Regulators Implement Changes To Support Capital Markets

In the face of the recent uncertainty in global markets, Canadian securities regulators have implemented legislation designed to facilitate capital formation and reduce regulatory burden for issuers. This legislation is in the form of three coordinated blanket orders, summarized below. The blanket orders are subject to time limits set by each jurisdiction, and in Ontario, they will expire on October 16, 2026, unless extended.

Less Historical Financial Disclosure – Coordinated Blanket Order 41-930

Under this blanket order, an issuer needs only to include audited financial statements for its last two completed financial years in its prospectus for an initial public offering, as compared to the previous requirement for the last three completed years. This reduction to the last two years of audited financials also applies to documents for certain other transactions, including information circulars where shares of an issuer are issued in exchange for the securities of