Canadian securities regulators will not implement proposed rule for venture issuers

Calgary – The Canadian Securities Administrators (CSA) today announced that they will not pursue implementation of proposed National Instrument 51-103 Ongoing Governance and Disclosure Requirements for Venture Issuers (NI 51-103).

NI 51-103 was to introduce, among other things, a new tailored regulatory regime for venture issuers that was intended to streamline venture issuer disclosure to reflect the needs and expectations of venture issuer investors. The regime was also intended to make disclosure requirements more suitable and manageable for venture issuers at this stage of their development.

Although market participants supported many aspects of proposed NI 51-103, they raised significant concerns about the burden that transitioning to a new regime and having a mandatory annual report would place on venture issuers. After reviewing the comments received and further consideration, the CSA determined not to pursue implementation of proposed NI 51-103.

The CSA is considering implementing some of the proposals within proposed NI 51-103 as amendments to the existing regulatory regime for venture issuers. Any resulting proposed amendments would be published for comment, as necessary.

CSA Notice 51-340 announcing this decision has been posted to various CSA member websites.

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

For more information:

Carolyn Shaw-Rimmington
Ontario Securities Commission

Mark Dickey
Alberta Securities Commission

Sylvain Théberge
Autorité des marchés financiers

Richard Gilhooley
British Columbia Securities Commission

Ainsley Cunningham
The Manitoba Securities Commission

Wendy Connors-Beckett
Financial and Consumer Services
New Brunswick

Tanya Wiltshire
Nova Scotia Securities Commission

Daniela Machuca
Financial and Consumer Affairs
Authority of Saskatchewan

Janice Callbeck
The Office of the Superintendent of
Securities, P.E.I.

Doug Connolly
Service NL

Rhonda Horte
Office of the Yukon Superintendent
of Securities

Louis Arki
Nunavut Securities Office

Donn MacDougall
Office of the Superintendent of Securities
Government of the Northwest Territories