Proposed Changes To Long Form Prospectus Rules Codify And Expand On Existing Underwriting Practices

NI 41-101 proposes changes to over-allotment options, restrictions on backdoor underwritings and prospectus certification requirements for substantial beneficiaries

Proposed National Instrument 41-101 - General Prospectus Requirements and Related Amendments (NI 44-101 or the Instrument) was published by the Canadian Securities Administrators on December 21, 2006 for comment. It proposes significant amendments which would affect, among others, the long form prospectus rules, short form prospectus rules, continuous disclosure requirements and investment fund rules.

The substance and purpose of the Instrument is expressed primarily to be the harmonization and consolidation of existing prospectus requirements and policy across Canada. The proposal, however, goes much further than that, with the introduction of new restrictions for linked notes and other derivatives, expanded prospectus