Canadian regulators propose new processes for making regulatory decisions

    VANCOUVER, Sept. 4 /CNW/ - Canadian regulators are proposing new
processes for individuals and public companies filing prospectuses or applying
for relief from securities requirements in multiple jurisdictions.
    On August 31, 2007, the Canadian Securities Administrators (CSA)
published for comment two proposed policies describing new processes that
would streamline the way persons who file a prospectus or apply for exemptive
relief obtain regulatory decisions in multiple jurisdictions. The new
processes represent the next step forward in the operation of the passport
system and include a set of interfaces between the passport jurisdictions and
    "The proposed policies will significantly enhance the effectiveness and
efficiency of the securities regulatory system for market participants who
want to gain access to the capital markets in both passport jurisdictions and
Ontario," said Jean St-Gelais, Chair of the CSA and President & Chief
Executive Officer of the Autorité des marchés financiers (Québec).
    Proposed National Policy 11-202 Process for prospectus reviews in
multiple jurisdictions and National Policy 11-203 Process for exemptive relief
applications in multiple jurisdictions would replace the existing Mutual
Reliance Review System policies for prospectus and exemptive relief
    All CSA members - except for the Ontario Securities Commission - plan to
move forward with the enhanced passport system at the end of March 2008 by
adopting the proposed passport rule (MI 11-102) published for comment earlier
this year.

    Under the proposed policies:

    -   The interfaces into Ontario for market participants based in passport
        jurisdictions are similar to the existing mutual reliance review
    -   Ontario market participants have direct access to passport
        jurisdictions under the passport rule.
    -   Foreign market participants gain access to the Canadian capital
        markets through a principal regulator on the same basis as other
        market participants in that regulator's jurisdiction.

    "The OSC has actively participated in developing the proposed prospectus
and exemptive relief application policies and designing the interfaces between
the passport jurisdictions and Ontario," said Doug Hyndman, Chair of the CSA
Passport Steering Committee and Chair of the British Columbia Securities
Commission. "We look forward to continuing to work with our Ontario colleagues
as we develop a similar policy for registration. We expect to publish the
registration interface policy in the next few months."
    The passport system will allow a person who clears a prospectus,
registers as a dealer or adviser, or obtains a discretionary exemption in that
person's home province to have that clearance, registration or exemption
automatically apply in all of the passport provinces and territories. It will
also ensure that public companies are subject to only one set of harmonized
    CSA passport regulators expect to implement the passport system in
stages, starting with passport for prospectuses, continuous disclosure, and
discretionary exemptions concurrently with the expected implementation of the
national prospectus rule (NI 41-101) in March 2008. They expect to implement
passport for registration later, concurrently with the national registration
rule (NI 31-103) targeted for July 2008.
    The proposed policies are available on various CSA members' websites. The
comment period is open until October 30, 2007.

    The CSA, the council of the securities regulators of Canada's provinces
and territories, co-ordinates and harmonizes regulation for the Canadian
capital markets.

For further information:

For further information: Frédéric Alberro, Autorité des marchés
financiers, (514) 940-2176; Jane Gillies, New Brunswick Securities Commission,
(506) 643-7745; Andrew Poon, British Columbia Securities Commission, (604)
899-6880; Nicholas A. Pittas, Nova Scotia Securities Commission, (902)
424-6859; Tamera Van Brunt, Alberta Securities Commission, (403) 297-2664;
Dean Murrison, Saskatchewan Financial Services Commission, (306) 787-5879;
Ainsley Cunningham, Manitoba Securities Commission, (204) 945-4733; Doug
Connolly, Financial Services Regulation Division, Consumer and Commercial
Affairs Branch, Department of Government Services, Newfoundland and Labrador,
(709) 729-4909; Laurie Gillet, Ontario Securities Commission, (416) 595-8913

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