CSA Proposals For Venture Issuers – More Suitable And Manageable?

The Canadian Securities Administrators recently issued for comment a package of proposed amendments to existing continuous disclosure, prospectus and audit committee rules and related policies, intended "to make the disclosure requirements for venture issuers more suitable and manageable for issuers at their stage of development." The proposals are open for comment until August 20, 2014.

This represents the CSA's third attempt in recent years to streamline and reduce the rules for venture issuers, after earlier proposals in July 2011 and September 2012 to introduce a new standalone disclosure instrument. Although most respondents to the previous proposals agreed with their underlying objective, others believed all entities participating in Canada's capital markets should provide similar information to investors, regardless of their size or circumstances. Others disagreed on the kinds of concessions that could appropriately be made for venture issuers, or felt that