Consistency in regulations and harmonized approach across jurisdictions are important factors for the Cooperative Capital Markets Regulatory System, the CBA’s Business Law Section says.
The Section was responding to a draft prospectus and related registration exemptions under the Capital Markets Act published earlier this year.
The Section notes that most of the Ontario-specific provisions relating to prospectus exemptions have been eliminated, which will simplify application. For example, applying Section 2.6.1 to all jurisdictions, instead of just to Ontario, it says, is important because it establishes consistency on the type of disclosure issuers should obtain to ascertain whether a subscriber is family, friend or business associate.
Language is also important, and the Section makes a list of proposed changes to clarify the interpretation of some instruments.
Other comments touch on finders’ fees, exemptions related to provincial or territorial legislation, and offering memorandum requirements.
The Section also urges the publication of related consequential amendments to the regulations governing definitions, procedure, civil liability and related matters so that it may have a complete understanding of that regulation.