New rules that significantly change disclosure and governance practices of Canadian public companies came into force March 30.
The rules will apply to almost all reporting issuers other than investment funds.
“The net result of these rules is that investors will receive more consistent disclosure on a more timely basis and they can be more confident in the
quality of the information they receive,” said Steve Sibold, chair of the Canadian Securities Administrators (CSA) and
of the Alberta Securities Commission.
One of the new rules harmonizes continuous disclosure requirements across Canada for the first time and introduces a number of changes, including shorter filing deadlines for financial statements.
Another rule will require CEOs and CFOs to certify their financial disclosure.
There is also an instrument establishing the responsibilities and composition of audit
committees, and another requiring that an issuer’s
auditors participate in the oversight program of the Canadian Public Accountability Board.
Two changes have not
been adopted by the British Columbia Securities Commission.
A webcast and a detailed brochure comparing the new continuous disclosure requirements to the existing ones are available at www.osc.gov.on.ca/webcast.
The CSA is a council of the 13 securities regulators of Canada’s provinces and territories.
