Disclosure – Is It Clear And Conspicuous Enough?

The type and use of promotions for securities has long been scrutinized and regulated. For example, in 2021, the British Columbia Securities Commission (BCSC) released for comment Proposed BCI 51-519 Promotional Activity Disclosure Requirements, which set out a framework for required disclosure in relation to promotional activities (see our bulletin article here for more information). However, according to regulators, some issuers and registrants continue to engage in problematic promotional activities.

On April 25, 2024, the BCSC released BC Notice 51-703 "Clear and Conspicuous" Disclosure of Investor Relations Activities under Section 52(2) of the Securities Act, RSBC 1996, c. 418, detailing expectations for "clear and conspicuous" disclosure regarding the relationship between an issuer and those that engage in investor relations activities for the issuer. For context, "Investor Relations Activities" are defined to include "any activities or oral or written