Canadian securities regulators seek comment on soliciting dealer arrangements

Calgary and Toronto – The Canadian Securities Administrators (CSA) today published for comment CSA Staff Notice 61-303 and Request for Comment Soliciting Dealer Arrangements. The notice outlines regulatory issues raised by soliciting dealer arrangements and seeks input on the practice, which generally involves an issuer paying a dealer to successfully solicit securities from a securityholder in connection with corporate transactions. 

“The practice of soliciting dealer arrangements raises certain securities regulatory issues, notably around conflicts of interest and the integrity of the voting and tendering process,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “In light of these issues, we believe it is appropriate to assess how these arrangements are being used and whether further regulatory action is appropriate.”  

Soliciting dealer arrangements may be used to solicit securities from securityholders to vote in connection with a matter requiring shareholder approval, or to tender securities for a takeover bid. These arrangements may also be used to incentivize dealers to contact securityholders to participate in a rights offering, to exercise rights to redeem or convert securities, or to attain the requisite quorum for amendments to documents affecting the rights of securityholders. 

The Staff Notice can be found on CSA members’ websites

Comments should be submitted in writing by June 11, 2018. 

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets. 

For more information: 

Kristen Rose
Ontario Securities Commission

Hilary McMeekin
Alberta Securities Commission

Alison Walker
British Columbia Securities Commission

Jason (Jay) Booth
Manitoba Securities Commission

Shannon McMillan
Financial and Consumer Affairs
Authority of Saskatchewan

Sylvain Théberge
Autorité des marchés financiers

Erin King
Financial and Consumer Services
Commission, New Brunswick

David Harrison
Nova Scotia Securities Commission

Steve Dowling
Office of the Superintendent
of Securities,
Prince Edward Island

Craig Whalen
Office of the Superintendent
of Securities,
Newfoundland and Labrador

Rhonda Horte
Office of the Yukon Superintendent
of Securities

Tom Hall
Office of the Superintendent
of Securities
Northwest Territories

Jeff Mason
Nunavut Securities Office