ARTICLE
2 October 2014

OSC Authority To Conduct Reviews Broadened

BL
Borden Ladner Gervais LLP

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BLG is a leading, national, full-service Canadian law firm focusing on business law, commercial litigation, and intellectual property solutions for our clients. BLG is one of the country’s largest law firms with more than 750 lawyers, intellectual property agents and other professionals in five cities across Canada.
Recent changes to Ontario’s Securities Act (OSA) have widened the OSC’s authority and ability to conduct continuous-disclosure and compliance reviews.
Canada Corporate/Commercial Law

Recent changes to Ontario's Securities Act (OSA) have widened the OSC's authority and ability to conduct continuous-disclosure and compliance reviews.

The biggest changes to the OSC's review powers can be found in the amended s. 20, and s. 20.1 of the OSA. These amendments came into force on July 24, 2014. Previously s. 20 allowed the OSC to review "books and records that were required to be kept by market participants". The amended s. 20 expanded this authority to review any records, not just those that market participants are required to keep under applicable law.

In addition to this, s. 20.1 has now broadened both the types of documents that may be required in a continuous disclosure review, and the type of issuer to which the provision applies. Continuous disclosure reviews can now be conducted on any issuer (previously reporting issuer) who may be required to deliver to the OSC any information and documents relevant to the review (previously information and documents relevant to disclosures). The OSC has not yet released any guidelines on how the amended provisions will change their review process.

A full copy of the amendments can be read here.

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