CSA Proposed Securitized Products Rules - Definition Of Securitized Products

As indicated in our previous posting, the Canadian Securities Administrators have proposed a new framework for the regulation of securitized products which includes:

• enhanced disclosure requirements for securities issued under a prospectus
• enhanced continuous disclosure requirements
• certification requirements
• rules narrowing the class of eligible investors in the exempt market
• rules prescribing disclosure, both initial and ongoing, in respect of exempt distributions.

We will be providing regular commentary in this forum on the proposed framework and its potential implications for securitization market participants. This is our first such submission and touches upon the initial, threshold, issue of applicability. What all of these proposed rules have in common is that they apply to "securitized products", which is the subject of a new definition.