Regulatory Alerts2025-09-19
Regulation 52-110 Respecting Audit Committees
Issued by Canadian securities regulators under the Securities Act, this regulation establishes mandatory requirements for audit committees of reporting issuers. It mandates that every issuer maintain an audit committee with a written charter, direct reporting lines to external auditors, and specific responsibilities for overseeing financial reporting and pre-approving non-audit services. The rule further defines strict independence and financial literacy criteria for committee members while outlining limited exemptions for controlled companies and transitional periods following initial public offerings.
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