• D. Jeff Larkins, Solicitor

CSA Highlights Common Deficiencies in Reporting Issuer Continuous Disclosure

Updated: Jan 24, 2020

CSA Highlights Common Deficiencies in Reporting Issuer Continuous Disclosure

The Canadian Securities Administrators ("CSA") published their biennial report summarizing CSA staff's ongoing review of reporting issuers' continuous disclosure and highlighting common deficiencies and best practices. The CSA's continuous disclosure review program assesses the compliance of issuers' continuous disclosure documents with securities law.

The most recent report noted continued deficiencies in issuers' use of non-GAAP financial measures - which will remain an area of focus for the CSA. Other areas of concern or where issuers can improve disclosures included, but were not limited to: fair value measurements and disclosures; forward looking information; discussions of issuers' results of operations and significant projects in development; climate change disclosures; and mineral project disclosure.

In fiscal 2018, 51 per cent (2017 - 43 per cent) of CSA review outcomes required issuers to take action to improve and/or amend their disclosure, or resulted in the issuer being referred to enforcement, cease traded or placed on the default list.

A copy of the full report can be found here.

Endeavor Law can assist issuers with Canadian securities law continuous disclosure compliance and regulatory matters. Endeavor Law will always seek to provide competitive pricing for any legal services requested and is pleased to discuss fee arrangements that suit any potential client.

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