The Canadian Securities Administrators announced on January 11, 2024, the final amendments to the delivery requirements for non-investment fund reporting issuers prospectus filings. The final amendments will come into force on April 16, 2024, and will streamline the process by which prospectuses are made available to investors. The new rules will allow issuers to satisfy delivery requirements by making prospectuses available through public electronic access rather than delivery of a paper copy, as currently required, and will apply for most types of prospectuses, with some limited exceptions.
Access Equals Delivery Prospectus Delivery Requirements
Under the new rules, the delivery requirements applicable to a preliminary prospectus (including a preliminary base shelf prospectus or preliminary base post-receipt pricing prospectus) will be met when the prospectus is filed and a receipt is issued and posted on SEDAR+. Delivery requirements for a final prospectus will be met when the prospectus is filed and a receipt is issued and posted on SEDAR+, along with a news release being disseminated and filed on SEDAR+. The news release must specify that the prospectus is available on SEDAR+ and that an electronic or paper copy of the prospectus will be made available upon request, without charge.
Conclusion
When in force in April 2024, the Access Equals Delivery rules will align Canada’s rules with those of other major securities markets, including the United States. It is also expected to significantly reduce costs and reduce the environmental impact of the offering process.
If you have questions concerning the Access Equals Delivery rules, please contact Keith Inman at [email protected] or by phone at 250-869-1195.
