Canadian Securities Regulators Propose Streamlined Disclosure Requirements For Offerings Of Foreign Securities

Canadian securities regulators are proposing to amend certain disclosure rules applicable to private placements. The proposed amendments continue an initiative to eliminate the need to prepare a "wrapper" when foreign issuers offer securities in Canada to permitted clients (e.g., institutional investors) under a prospectus exemption. This initiative was discussed in a previous edition of MarketCaps. The comment period on the proposed amendments to National Instrument 33-105 Underwriting Conflicts ends on February 26, 2014.

The proposed amendments would eliminate one of the disclosure requirements that necessitate a "wrapper" when foreign securities are offered in Canada.  Currently, National Instrument 33-105 requires that detailed disclosure on the relationships and conflicts of interest that exist between underwriters and issuers or selling securityholders be included in a document provided in connection with an offering of securities.   Market participants have