CSA Provides Update on Proposed Changes to Early Warning Regime – Reporting Threshold Stays at 10%

The Canadian Securities Administrators (CSA) have provided an update on their proposed changes to the early warning reporting regime (the Draft Amendments), which were originally published for comment in March 2013 and summarized in a previous Osler Update. 

Most noteworthy is the CSA's decision not to proceed at this time with their original proposal to reduce the early warning reporting threshold from 10% to 5%, which would have put Canada in line with the reporting threshold in the United States and most other countries.  Activist investors and hostile bidders will continue to be able to accumulate toeholds of up to 9.9% without having to make public disclosure, maintaining an advantage these investors and bidders have in respect of their activities in Canada as compared to the United States.