TORONTO, Nov. 9, 2012 /CNW/ -The Ontario Securities Commission today
published an Issuer Guide (Staff Notice 51-720), which outlines eight
key areas that should be considered by companies operating in emerging
markets. The Issuer Guide sets out Staff's expectations for the
directors and management of issuers operating in emerging markets and
is designed to highlight areas of risk that require particular focus to
address the challenges faced when operating in emerging markets.
The Issuer Guide highlights several areas of risk that may warrant
further scrutiny and sets out questions that directors and management
should consider. It is intended to clarify existing continuous
disclosure requirements and should be considered by companies and
boards in assessing risk and complying with securities law.
"We have high expectations for issuers, regardless of where they are
located, and look to directors and management to discharge their
responsibilities fully," said Howard I. Wetston, Q.C., Chair and CEO of
the Ontario Securities Commission. "This Guide clearly articulates our
expectations regarding compliance and we will continue to monitor this
area closely in order to protect the integrity of our markets."
In March 2012, the OSC published Staff Notice 51-719 Emerging Markets Issuer Review, following a review of Ontario reporting issuers listed on Canadian
exchanges with significant business operations in emerging markets.
The OSC is working with its regulatory partners in responding to the
recommendations in Staff Notice 51-719. Specific next steps include the
development of standards for underwriters, improvements to the audit
function and enhanced listing processes to address the unique concerns
raised by emerging market issuers.
In the coming months, the OSC will continue to work with the Investment
Industry Regulatory Organization of Canada as it reviews underwriting
due diligence standards to promote industry best practices and
standards in this area.
The OSC is working closely with the Canadian Public Accountability Board
(CPAB) on issues of common interest, including the opportunity to share
information permitted by legislation, and has held discussions with the
audit community, CPAB and international securities regulators to
address concerns about the use, access and reliance on foreign
component auditors work products.
Toronto Stock Exchange and TSX Venture Exchange are currently finalizing
additional guidance to address risks associated with listing emerging
market issuers, including clarification of the expectations of issuers
and the advisory community. The Exchanges expect to publish the new
requirements for comment in November.
The OSC is the regulatory body responsible for overseeing Ontario's
capital markets. Its mandate is to provide protection to investors from
unfair, improper or fraudulent practices and to foster fair and
efficient capital markets and confidence in capital markets.
SOURCE: Ontario Securities Commission
For further information:
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Manager, Public Affairs
Media Relations Specialist
For Investor Inquiries:
OSC Contact Centre
1-87-7-785-1555 (Toll Free)