For the most part the CSA's proposed prospectus disclosure
rules escaped substantive comment although we and
a few others did provide some technical comments. This is not
surprising in as much as they by and large are a copy of the
existing rules under Reg AB Among the few items which did attract
attention were those requiring the disclosure of financial
information in respect of significant obligors, credit enhancers
and counterparties and that requiring disclosure of any material
conflict of interest between participants in a transaction and
investors.
In respect of the first item, several commentators pointed out
that, where the obligor or credit enhancer is a private company,
imposing an obligation on an issuer to obtain the financial
information and to disclose it would be unfair and may preclude a
seller from accessing the market due to a refusal of the obligor,
etc. to provide such information. Most of these commentators
recommended that it should be
