Potential Revamp Of Securities Regulation In Canada

Canada's securities regulators are considering revamping public companies' reporting obligations and the rules governing capital raising in the public markets in light of changing investor demographics, technological innovation and globalization. The regulators have published a consultation paper identifying a broad range of potential rule changes that they believe could reduce regulatory burdens on companies without compromising investor protection.¹

Potential Reforms

Capital Raising

The most notable proposal on capital raising is to replace the short-form prospectus system with an alternative public offering model under which prospectus disclosure would focus on deal-specific information, including a detailed description of the securities being offered; the intended use of proceeds; the plan of distribution; the issuer's consolidated capitalization and earnings coverage; material risk factors related to the offering; and any conflicts of interest.