Regulatory Updates

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The ASC is making amendments (Amendments) to ASC Rule 15-501 Rules of Practice and Procedure for Commission Proceedings. The Amendments will remove some outdated references and create or amend provisions that will further promote the efficient use of scheduled time for hearings.

ASC Notice Amendments to ASC Rule 15-501 Rules of Practice and Procedure for Commission Proceedings

On June 20, 2016, the Canadian Securities Administrators (the CSA or we) published a notice regarding the implementation of the market share threshold. This notice updates the list of protected and unprotected marketplaces published on January 25, 2018. The updated list will be in effect from April 1, 2019 to March 31, 2020. We note that there is one change from last year. Specifically, Aequitas NEO Exchange’s lit book, NEO-L, has qualified as a marketplace that displays protected orders.

CSA Staff Notice 23-324 Order Protection Rule: Market Share Threshold for the period April 1, 2019 to March 31, 2020

On December 18, 2018, the Canadian Securities Administrators (CSA) published for comment CSA Staff Notice and Request for Comment 23-323 Trading Fee Rebate Pilot Study, to seek input on a proposed pilot study that would apply temporary pricing restrictions on marketplace transaction fees applicable to trading in certain securities (Proposed Pilot).

Update: The comment period ended on March 1, 2019. 

CSA Staff Notice 11-340 Extension of Comment Period CSA Staff Notice 23-323 Trading Fee Rebate Pilot Study

The Canadian Securities Administrators (CSA or we) have been considering a pilot study on the payment of trading fee rebates for many years in relation to our continued work to foster fair and efficient capital markets and confidence in capital markets. The CSA published for comment a proposed Trading Fee Rebate Pilot Study that would apply temporary pricing restrictions on marketplace transaction fees applicable to trading in certain securities (Proposed Pilot). We are publishing the Proposed Pilot for a 45-day comment period to solicit views. We are seeking comment on all issues raised in this notice, including the design of the Proposed Pilot that is contained in the Design Report at Appendix A, as well as the specific questions raised within it.

Update: The comment period ended on February 1, 2019.

The ASC published for a 45-day comment period proposed amendments (Proposed Amendments) to ASC Rule 15-501 Rules of Practice and Procedure for Commission Proceedings. The Proposed Amendments, if adopted, will remove some outdated references and create or amend provisions that will further promote the efficient use of scheduled time for hearings.

The Canadian Securities Administrators (CSA) published CSA Staff Notice 51-356 Problematic Promotional Activities by Issuers to illustrate some of the specific problems observed and to ensure that promotional activity by, or on behalf, of issuers remains balanced and not misleading. We will continue to monitor promotional activity to protect investors and the integrity of our capital markets.

The Alberta Securities Commission published ASC Blanket Order 45-520 Facilitating Access to Capital by Community Economic Development Corporations which offers a new, limited exemption to the financial statement requirements of the offering memorandum prospectus exemption for community economic development corporations.

With the enactment of new provisions of the Alberta Securities Act and the publication of ASC Policy 15-602 Whistleblower Program, the ASC is launching its new Whistleblower Program effective immediately. Policy 15-602 outlines the intent, operation and scope of the new Securities Act amendments, describes how whistleblowers may provide tips, and sets out the key protections that are provided for whistleblowers under the Program. For a full understanding of the Program, both the new provisions in Parts 2.1 and 17.02 of the Securities Act and Policy 15-602 Whistleblower Program should be consulted.

ASC Notice of ASC Policy 15-602 Whistleblower Program

ASC Policy 15-602 Whistleblower Program

Securities Act, Bill 20

The Canadian Securities Administrators (CSA) published CSA Staff Notice 51-357 Staff Review of Reporting Issuers in the Cannabis Industry which highlights CSA staff's observations on reporting issuers' continuous disclosure, common deficiencies and best practices.

CSA Staff Notice 51-357 Staff Review of Reporting Issuers in the Cannabis Industry

The Canadian Securities Administrators (CSA) published CSA Staff Notice 45-308 (Revised) Guidance for Preparing and Filing Reports of Exempt Distribution Under National Instrument 45-106 Prospectus Exemptions (SN 45-308).

SN 45-308 is being reissued to reflect a local change in Alberta resulting from the implementation of the repeal and replacement of ASC Rule 72-501 Distributions to Purchasers Outside Alberta which included the withdrawal of ASC Policy 45-601 Distributions Outside Alberta.

The Alberta Securities Commission published for a 30-day comment period proposed ASC Blanket Order 45-520 Facilitating Access to Capital by Community Economic Development Corporations which proposes a new, limited exemption to the financial statement requirements of the offering memorandum prospectus exemption for community economic development corporations.

ASC Notice and Request for Comment - Blanket Order 45-520 Facilitating Access to Capital by Community Economic Development Corporations

The Alberta Securities Commission today published the order revoking ASC Blanket Order 45-519 Prospectus Exemptions for Resale Outside of Canada (ASC Blanket Order 45-519). ASC Blanket Order 45-519 provides two prospectus exemptions which are subject to an anti-avoidance provision, that allow for the resale of securities (and underlying securities) if the issuer is not a reporting issuer in any jurisdiction of Canada and if the resale is through an exchange, or a market, outside of Canada or to a person or company outside of Canada. These prospectus exemptions and anti-avoidance provision have been moved into new ASC Rule 72-501 Distributions to Purchasers Outside Alberta (ASC Rule 72-501) which becomes effective today. As a result, ASC Blanket Order 45-519 is no longer necessary.

Revocation of ASC Blanket Order 45-519 Prospectus Exemptions for Resale Outside Canada

The Alberta Securities Commission today published the repeal and replacement of ASC Rule 72-501 Distributions to Purchasers Outside Alberta (the New Rule) which will be effective on August 31, 2018. The New Rule provides significantly broader prospectus exemptions for distributions to purchasers outside Canada. The New Rule also provides a prospectus exemption for distributions outside Alberta into other jurisdictions of Canada under the offering memorandum exemption. In addition, the New Rule contains prospectus exemptions for the resale of securities outside of Canada if the issuer is not a reporting issuer in any jurisdiction of Canada.

ASC Notice of Repeal and Replacement of ASC Rule 72-501 Distributions to Purchasers Outside Alberta