OSC Guidance For Emerging Market Issuers

The Ontario Securities Commission's Staff Notice 51-720 – Issuer Guide for Companies Operating in Emerging Markets provides guidance to emerging market issuers and their directors on governance and disclosure practices. The guide is part of a broader regulatory review of the issues facing emerging market issuers and focuses on companies with management or principal active operations in areas such as Asia, Africa, South America and Eastern Europe.

While the guide does not create new legal obligations or modify existing ones, it highlights areas of risk and outlines OSC staff's expectations regarding management and director compliance with existing disclosure requirements. Accordingly, it is of interest to emerging market issuers as it will be the basis for continuous disclosure and prospectus reviews as well as enforcement proceedings. Given that the guide addresses requirements of general application, it is useful guidance for all Canadian public companies.