News

For Immediate Release
February 25, 2016

Canadian securities regulators adopt amendments to early warning system

Montreal - The Canadian Securities Administrators (CSA) announced today the publication of final amendments that are designed to provide greater transparency about holdings of reporting issuers’ securities under the early warning system.  

“These final amendments enhance the quality and integrity of the early warning reporting regime in a manner that is appropriate for the Canadian capital markets,” said Louis Morisset, CSA Chair and President and CEO the Autorité des marchés financiers. “By enhancing disclosure in early warning reports, the amendments intend to allow the market to review and assess the potential impact of changes in the ownership of, or control or direction over, a reporting issuer’s securities.”

Once in effect, the amendments will, among other things:

  • require disclosure of decreases in ownership, control or direction of 2 per cent or more for security-holders subject to reporting;
  • require disclosure when a security-holder’s ownership, control or direction falls below the early warning reporting threshold of 10 per cent;
  • exempt lenders and borrowers, in certain circumstances, from including the securities lent or borrowed for the purposes of determining the early warning reporting threshold trigger;
  • make the alternative monthly reporting system unavailable to eligible institutional investors who solicit proxies from security holders in certain circumstances;
  • enhance the disclosure in the early warning report; and
  • further streamline the information required in a news release.

Except in Ontario, provided all necessary Ministerial approvals are obtained, the amendments will come into force on May 9, 2016. In Ontario, the amendments will come into force on the later of (a) May 9, 2016, and (b) the day on which certain sections of Schedule 18 of the Budget Measures Act, 2015 (Ontario) are proclaimed into force. A copy of the amendments can be found on 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:

Mark Dickey
Alberta Securities Commission
403-297-4481
Sylvain Théberge  
Autorité des marchés financiers
514-940-2176
Richard Gilhooley
British Columbia Securities Commission
604-899-6713
Kristen Rose  
Ontario Securities Commission
416-593-2336 

Ainsley Cunningham
Manitoba Securities Commission
204-945-4733

Andrew Nicholson
Financial and Consumer Services
Commission, New Brunswick
506-658-3021

Tanya Wiltshire
Nova Scotia Securities Commission
902-424-8586

Janice Callbeck
Office of the Superintendent of Securities
PEI
902-368-6288

John O’Brien
Office of the Superintendent of Securities
Newfoundland and Labrador
709-729-4909 

Rhonda Horte
Office of the Yukon Superintendent of Securities
867-667-5466

Jeff Mason
Nunavut Securities Office
867-975-6591 

Tom Hall
Northwest Territories
Securities Office
867-767-9305

Shannon McMillan
Financial and Consumer Affairs
Authority of Saskatchewan
306-798-4160