Securities In Brief - OSC Provides Guidance For Emerging Market Issuers

On November 9, 2012, the Ontario Securities Commission (OSC) released OSC Staff Notice 51-720 – Issuer Guide for Companies Operating in Emerging Markets (the Issuer Guide). The Issuer Guide highlights key areas of risk for Canadian public companies which have significant business operations in emerging markets, sets out the expectations of OSC Staff regarding regulatory compliance and is intended to assist directors and management of such issuers in meeting the level of standards expected in Ontario capital markets. Publication of the Issuer Guide follows a review of emerging market issuers (EMIs) undertaken by the OSC, the findings of which were published in March 2012 in OSC Staff Notice 51-719 – Emerging Markets Issuer Review (the Review). The Review identified deficiencies relating to EMIs in relation to corporate governance practices, use of complex corporate structures, related party transactions and risk management and internal controls.