• New CSA Rule for Issuers Quoted in the U.S. Over-the-Counter Markets to be Adopted in All Provinces and Territories Except Ontario
  • July 31, 2012 | Authors: Daniel N. Bloch; Rebecca Kacaba
  • Law Firm: Aird & Berlis LLP - Toronto Office
  • Multilateral Instrument 51-105 Issuers Quoted in the U.S. Over-the-Counter Markets (the “Rule”) is expected to come into force on July 31, 2012 in all Canadian provinces and territories except Ontario. The Rule aims, by regulating disclosure requirements, to address damages to the reputation of Canada’s capital markets by U.S. over-the-counter (“OTC”) companies who have historically traded their shares on the Canadian marketplace without adequate public disclosure. In British Columbia a less restrictive form of the Rule, B.C. Instrument 51-109 (“51-109”), has been in force since 2008. The Canadian Securities Administrators (“CSA”) have found that since 2008 and the adoption of 51-109 in British Columbia, certain OTC issuers had been migrating to other Canadian jurisdictions and thus a need had developed for a more widespread rule.