Canadian Securities Administrators Decide not to Require Internal Control Audit Opinions from External Auditors

The Canadian Securities Administrators (the "CSA") have issued a notice which provides market participants with an update as to the status of the CSA’s earlier proposals with respect to internal control reporting requirements. The most important change is that the CSA no longer proposes to require internal control audit opinions from external auditors concerning management’s assessment of the effectiveness of internal control over financial reporting.

After an extensive review and consultation, and in light of the delays in the United States with respect to the rules implementing section 404 of the Sarbanes-Oxley Act of 2002 with respect to internal controls, the CSA has determined not to proceed with proposed Multilateral Instrument 52-111 which was published for comment in February 2005.