Regulatory Alerts2025-09-19
National Policy 46-201: Escrow for Initial Public Offerings
The Canadian Securities Administrators issued National Policy 46-201 to establish uniform escrow requirements for principals of issuers conducting initial public offerings or significant business changes across Canada. The policy classifies issuers as exempt, established, or emerging, mandating that principals of established and emerging issuers place their securities in escrow to align their interests with public investors. It defines specific release schedules, requiring the gradual release of escrowed securities over 18 months for established issuers and 36 months for emerging issuers, while outlining exceptions and permitted secondary offerings.
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