OSC Publishes Guide For Emerging Market Issuers

Introduction

On November 9, 2012, the Ontario Securities Commission ("OSC") published Staff Notice 51-720 Issuer Guide for Companies Operating in Emerging Markets (the "Issuer Guide") to provide assistance to emerging market issuers ("EMIs") and their directors and management on their governance and disclosure practices. All market issuers benefit from specific guidance that help them meet regulatory and investor expectations, but EMIs face unique challenges and the Issuer Guide: (i) highlights potential areas of risk or red flags that may warrant further scrutiny; (ii) sets out questions that directors and management should consider when deciding how to address risks of doing business in emerging markets; and (iii) outlines the OSC's expectations regarding compliance with existing disclosure requirements. The Issuer Guide is intended to help clarify existing continuous disclosure requirements under securities legislation for EMIs and not intended to create new