The amendments and changes will come into force on April 16
The Canadian Securities Administrators (CSA) have announced the publication of the final amendments and changes to various national instruments and companion policies concerning the implementation of an access model for prospectuses of non-investment fund reporting issuers.
The Access Model provides alternative procedures where access may be provided to a preliminary prospectus or a final prospectus, offering a modern approach to document accessibility. According to the CSA, participation in this Access Model is not mandatory for issuers. Instead, it presents alternative procedures for granting access to these critical documents. By allowing public electronic access to a prospectus and notifying investors of its availability through SEDAR+, the Access Model can fulfill the conditions for exemption from prospectus delivery requirements in certain provinces like British Columbia, Québec, and New Brunswick. In other CSA member jurisdictions, it may constitute delivery under securities legislation.
Stan Magidson, CSA chair and CEO of the Alberta Securities Commission, emphasized the Access Model's goal to modernize prospectus accessibility. "The Access Model aims to modernize the way prospectuses are made accessible to investors and reduce costs associated with the printing and mailing of prospectuses, which are ultimately covered by issuers."
"It offers benefits for both issuers and investors by providing a more cost-efficient, timely and environmentally friendly manner of communicating information to investors than paper delivery," Magidson added.
While the Access Model promotes electronic accessibility, it maintains provisions for prospective purchasers or buyers to request a copy of a preliminary or final prospectus in electronic or paper form. The flexibility aims to accommodate diverse preferences within the investor community.
The CSA, the council of securities regulators of Canada's provinces and territories, is responsible for coordinating and harmonizing regulation for the Canadian capital markets. The CSA said that provided that it obtains all necessary approvals, the announced amendments and changes are slated to take effect on April 16.
