CSA Abandon Proposal To Implement Tailored Disclosure Regime For Venture Issuers

The CSA announced today that they are no longer pursuing the implementation of a proposed new regulatory regime for venture issuers.

Proposed National Instrument 51-103 would have resulted in a separate regulatory regime for venture issuers which, while intended to be more tailored and streamlined, would have resulted in a comprehensive overhaul of applicable prospectus and private placement requirements, as well as continuous disclosure and governance obligations. We previously discussed the proposed versions of NI 51-103 in September 2011 and September 2012.

The CSA's decision to abandon the proposal was reportedly affected by, among things, concerns expressed by commenters on the burden it would impose on venture issuers in terms of transition to a new regime, and the proposed new disclosure obligations such as the proposed mandatory annual report.