Regulatory Alerts2021-08-12
Draft Amendments to Policy Statement to Regulation 41-101 Respecting General Prospectus Requirements
Canadian securities regulators have issued draft amendments to Policy Statement 41-101P to clarify financial statement disclosure requirements for prospectuses involving acquisitions and new businesses. The updates define when an acquired entity constitutes an issuer's primary business or predecessor, mandating specific historical financial statements and MD&A to ensure full, true, and plain disclosure. Additionally, the amendments provide detailed guidance on significance testing, optional tests for issuer growth, and exceptions for mining asset acquisitions to assist issuers in meeting regulatory standards.
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