Advisors pushing Canadian assets may be disgruntled as the CSA considers proposed amendments that would limit exemptions on disclosure requirements for foreign securities in Canada to institutional investors.
The amendments – published for comment on Thursday – would eliminate the need for a ‘wrapper’ – which requires additional disclosure requirements – when foreign issuers offer securities in Canada to ‘permitted’ clients.
“The proposed amendments are intended to streamline the process for offering foreign securities to sophisticated Canadian investors, thus broadening the range of investment opportunities available to these investors, without compromising investor protection,” said Bill Rice, Chair of the CSA and Chair and Chief Executive Officer of the Alberta Securities Commission.
CSA jurisdictions, excluding Ontario and British Columbia, also proposed a multi-lateral instrument (CSA Multilateral Instrument 45-107), which would provide exemptions from other securities law disclosure requirements that apply to foreign securities. The offering is in line with the Ontario Securities Commission’s (OCS) proposed national instrument announced in April.
The CSA will help move all three initiatives forward, with the intention of publishing its final rules across jurisdictions by next spring. The comment period is open for 90 days until Feb. 26, 2014.