CSA Announces Early Warning Threshold Will Remain At 10%

In an update issued today, the Canadian Securities Administrators ("CSA") announced that it will not be lowering Canada's early warning reporting threshold from 10% ownership to 5% as previously proposed. The CSA had proposed lowering the threshold as part of a suite of amendments to Canada's early warning regime that were proposed in March 2013. (See our  March 14, 2013 communication on the proposed amendments.) In addition to keeping the reporting threshold at 10%, the CSA has decided not to proceed with the proposal to include "equity equivalent derivatives" (such as total return swaps) in determining whether a shareholder has crossed the threshold for early warning reporting disclosure.