Divided On Diversity: Alternative Proposals From Canadian Securities Regulators To Update Diversity Disclosure Requirements

On April 13, 2023, the Canadian Securities Administrators (the CSA) served up for comment two alternative approaches to updating diversity and director nomination process requirements under Canadian securities laws - neither of which is likely to satisfy investors. In this post, we summarize the two approaches that address diversity disclosure with respect to characteristics beyond gender. In our Osler Update, we consider these alternative approaches and the proposed updates to the director nomination process in more detail.

Form A: The 'flexible' approach

The Form A amendments are premised on providing issuers with flexibility - both to define "identified groups" (other than women) which are meaningful to the issuer's diversity strategy and to design tailored approaches to achieving or maintaining diversity among its directors and executive officers. Form A contemplates narrative disclosure describing the issuer's diversity objectives, mechanisms for achieving