CSA Proposed Securitized Products Rules - Continuous Disclosure

As briefly discussed in prior blog posts, the securitized product rules published by the Canadian Securities Administrators (CSA) propose to significantly expand the continuous and periodic disclosure regime applicable to issuers of securitized markets in both the public and private markets. This is a significant departure from the current regulatory regime in the exempt market.

While National Instrument 51-102 Continuous Disclosure Requirements will continue to apply, the newly proposed National Instrument 51-106 Continuous Disclosure Requirements for Securitized Products (NI 41-106) would impose a number of new, additional disclosure requirements specific to issuers of any securitized product that is not a "covered bond" or a non-debt security of a "mortgage investment entity". These disclosure requirements are largely based on the requirements of Reg AB and certain of the proposed rules from the SEC of April, 2010 relating to ABS and other structured finance