TORONTO, July 9, 2013 /CNW/ -- The Canadian Investor Relations Institute
(CIRI) today submitted its recommendations to the Canadian Securities
Administrators (CSA) to adopt changes in the thresholds for reporting
share ownership, which would improve the transparency and efficiency of
the Canadian capital market.
CIRI's submission illustrates that Canada's early warning threshold,
i.e. the level at which shareholders must publicly disclose their
ownership position, and the reporting of subsequent incremental
ownership changes are too high, are out of step with other developed
capital markets and therefore may be negatively impacting the Canadian
In its submission, CIRI recommends that the CSA:
lower the beneficial ownership threshold under the Early Warning System
to five percent (5%) from 10 percent (10%);
include equity equivalent derivatives and securities lending positions
in the Early Warning System threshold calculation;
require disclosure of share ownership when shareholders fall below the
Early Warning System threshold;
require beneficial owners to disclose if there are subsequent one
percent (1%) incremental increases or decreases in the share ownership;
require that these disclosures be made before trading hours commence the
following business day; and
consider a future review of the Alternative Monthly Reporting system.
"These changes in share ownership disclosure would provide the market
with increased transparency regarding significant holdings of issuers'
securities that may affect control of that issuer. This is information
that all market participants are entitled to know. Increased
transparency would contribute to a more fair and efficient Canadian
capital market," said Yvette Lokker, President & CEO, CIRI.
CIRI's recommendations are in response to the CSA's Proposed Amendments
to National Instrument 62-103 Early Warning System and Related Take-Over
Bid and Insider Reporting Issues published in March, with July 12, 2013 as the deadline for comments.
CIRI initially advocated for lowering the Early Warning System
threshold in February 2011.
CIRI is a professional, not-for-profit association of executives
responsible for communication between public corporations, investors
and the financial community. CIRI contributes to the transparency and
integrity of the Canadian capital market by advancing the practice of
investor relations, the professional competency of its members and the
stature of the profession. With close to 600 members and four chapters
across the country, CIRI is the voice of IR in Canada. For further
information, please visit CIRI.org.
SOURCE: Canadian Investor Relations Institute
For further information:
President & CEO
Canadian Investor Relations Institute (CIRI)