New Internal Control Requirements for Public Companies

Originally published August 2008

The Canadian securities regulators are adopting additional requirements for internal control over financial reporting, which will expand the current CEO and CFO certificates and require additional disclosure in MD&A. Accompanying these new requirements is extensive guidance on how disclosure and internal controls should be designed and evaluated. The new requirements are to come into force on December 15, 2008 and will apply to December 31, 2008 financial statements.

Background

The current rules (Multilateral Instrument 52 –109 Certification of Disclosure in Issuers' Annual and Interim Filings) require a public company's chief executive officer and chief financial officer, or persons performing similar functions, (CEOs and CFOs) to personally certify that: