CSA release report on continuous disclosure review
The Canadian Securities Administrators today released Staff Notice 51-332 - Continuous Disclosure Review Program Activities for the Fiscal Year Ended March 31, 2010. As the title of the notice implies, the report summarizes the results of the CSA's continuous disclosure review program of issuers (other than investment funds) for fiscal 2010.
During fiscal 2010, the CSA completed 527 full reviews and 824 issue-oriented reviews of issuers, selected generally from those at a higher risk of non-compliance. Ultimately, the CSA required 72% of issuers reviewed to take action to improve disclosure. Common deficiencies identified in the full reviews related to the disclosure of accounting policies and measurement issues, the generic nature of disclosure in the MD&A and the improper use of oil and gas terminology. Review outcomes included (i) requiring an issuer to make certain changes or enhancements in the next filing; (ii) educating the issuer with respect to disclosure enhancements; (iii) requiring the issuer to refile certain documents; and (iv) adding the issuer to the CSA's default lists, issuing a cease trade order or referring the issuer to enforcement.
For fiscal 2011, the CSA stated that issue-oriented reviews will focus on IFRS transition disclosure, material contracts, corporate governance and follow-up review of certification.
