News Releases
Canadian securities regulators publish results of continuous disclosure reviews for fiscal 2016
Jul 18, 2016
The Canadian Securities Administrators (CSA) today published Staff Notice 51-346 Continuous Disclosure Review Program Activities for the fiscal year ended March 31, 2016, which summarizes the results of the CSA’s continuous disclosure (CD) review program, highlights common deficiencies and illustrates best practices for reporting issuers.
Overall, 62 per cent of review outcomes required issuers to take action to improve and/or amend their disclosure, or resulted in the issuer being referred to enforcement, cease traded or placed on the default list. This represents a slight increase from 59 per cent in fiscal 2015.
In fiscal 2016, CSA Staff noted disclosure deficiencies in a number of areas, including but not limited to:
- use of non-GAAP financial measures;
- liquidity and capital resources;
- discussion of operations by venture issuers without significant revenues;
- material contracts; and
- disclosure required by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.
“We strongly encourage issuers to review the CSA's report and use the findings to strengthen their compliance with continuous disclosure requirements,” said Louis Morisset, Chair of the CSA and Chair and CEO of the Autorité des marchés financiers.
Under Canadian securities law, reporting issuers must provide timely continuous disclosure about their business and affairs. Disclosure documents include financial statements, management’s discussion and analysis and other regulatory disclosure.
The CSA’s CD review program was established to assess issuers’ compliance of continuous disclosure documents and to help issuers understand their obligations to deliver high-quality information to investors.
CSA Staff Notice 51-346 is available on various CSA members’ websites.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
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For more information:
Kristen Rose
Ontario Securities Commission
416-593-2336
media_inquiries@osc.gov.on.ca
Alison Walker
British Columbia Securities Commission
604-899-6713
Jason Booth
The Manitoba Securities Commission
204-945-1660
Tanya Wiltshire
Nova Scotia Securities Commission
902-424-8586
Jeff Mason
Nunavut Securities Office
867-975-6591
Shannon McMillan
Financial and Consumer Affairs Authority of Saskatchewan
306-798-4160
Sylvain Théberge
Autorité des marchés financiers
sylvain.theberge@lautorite.qc.ca
Andrew Nicholson
Financial and Consumer Services Commission, New Brunswick
506-658-3021
Janice Callbeck
The Office of the Superintendent of Securities, P.E.I.
902-368-6288
Rhonda Horte
Office of the Yukon Superintendent of Securities
867-667-5466
Tom Hall
Office of the Superintendent of Securities,
Northwest Territories
867-767-9305