With the purpose of reducing Venture Issuer regulation, the Canadian Securities Administrators have adopted effective July 1, 2015 streamlined disclosure requirements for Venture Issuers with respect to interim quarterly management discussion and analysis of quarterly financial results. Once in effect, the amendments (principally to NI 51-102) will:

  • allow all venture issuers to meet interim management’s discussion and analysis requirements by preparing a brief “quarterly highlights” document;
  • allow venture issuers to use a new tailored form of executive compensation disclosure;
  • reduce the instances in which venture issuers will have to file business acquisition reports by increasing the significance threshold from 40 per cent to 100 per cent;
  • streamline prospectus disclosure requirements by reducing the number of years of company history and audited financial statements required in a venture issuer initial public offering prospectus from three to two years; and
  • strengthen corporate governance by requiring venture issuers to have an audit committee of at least three members, the majority of whom cannot be executive officers, employees or control persons of the venture issuer or of an affiliate of the venture issuer.