CSA Proposes Exempt Market Harmonization For Syndicated Mortgages

The Canadian Securities Administrators have published proposed amendments to National Instrument 45-106 Prospectus Exemptions (NI 45-106) and National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) which would:

• Remove the prospectus and registration exemptions for the distribution of syndicated mortgages, where available;
• Introduce additional requirements to the offering memorandum exemption that apply when used to distribute syndicated mortgages; and
• Amend the private issuer exemption so that it is not available for the distribution of syndicated mortgages.

It is the CSA’s view that the offering of syndicated mortgages raises investor protection concerns, especially when sold to retail investors, because, among other things they may be: