An access equals delivery model for financial statements and management discussion and analyses (“CD Documents”) as a substitute for the continuous disclosure requirements that currently apply to non-investment fund reporting issuers is overdue. 

As currently structured, the Canadian Securities Administrators (CSA) proposed amendments place increased and unnecessary encumbrances on reporting issuers. The proposed amendments include new provisions that require reporting issuers to disclose their use of the proposed access equal delivery model through new releases and notices posted on each issuer’s website. At the same time, the proposed amendments include a provision that mirrors the existing requirement to send annual notices to security holders by mail. As a result, the proposed amendments fail in their objective to address the inefficiencies of the current regulatory regime.

Today, it should come as no surprise to any security holder that an issuer’s CD Documents are available online.

We recommend that the CSA revise the proposed amendments to create an access equal delivery model that is reflective of market realities including the clear and ongoing proliferation of electronic communication and online resources.  See our detailed recommendations ici.