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On June 4, 2026, CNSX Markets Inc., operator of the Canadian Securities Exchange (the CSE or the Exchange), published proposed amendments to the CSE Listing Policies (the Policies) that would eliminate the requirement for all listed issuers to complete and file a monthly progress report (Form 7) on a monthly basis, and repeal Form 7 in its entirety (the Proposed Amendments). The Proposed Amendments are classified as public interest rule amendments and are subject to public comment.
Background
Form 7 has historically required listed issuers to provide summary information, both material and non-material, in a prescribed form no later than five trading days after the end of each month. The filing of Form 7 was not intended to replace a Listed Issuer's timely disclosure obligations under applicable securities law.
The concept of Form 7 predates the CSE's recognition as an exchange, having originated in the original application of Canadian Trading and Quotation System Inc. (CNQ) for recognition as a Quotation and Trade Reporting System, which was approved in February 2003. At that time, as the first such system approved under National Instrument 21-101 Marketplace Operation, the CNQ model included "enhanced disclosure" for investors, which was to be provided by issuers through various forms posted on the former CNQ website. The objective was to provide investors with additional management commentary beyond existing timely and continuous disclosure obligations.
Rationale for the Proposed Amendments
The CSE notes that much of the information in Form 7, where material, is already publicly available to investors through news releases, continuous disclosure documents, and other event-specific filings on SEDAR+ and the CSE. The non-material information contained in Form 7 is not otherwise required by law to be provided.
Following the CSE's recognition as an exchange and its significant policy and procedural changes over the past two decades of operation, the utility of Form 7 has diminished significantly. The Exchange is of the view that the cost of preparing and posting Form 7 monthly outweighs the benefits originally considered, and that the time and effort required could be more productively redirected toward listed issuers' business activities. Listed issuers have also indicated that this is an administrative burden, particularly when the information is already available elsewhere.
No other exchange in Canada currently has a reporting obligation similar to Form 7.
Summary of the Proposed Amendments
The Proposed Amendments would remove all references to Form 7 filing requirements from the Policies, including the following changes:
- Policy 1 (Interpretation and General Provisions) will be amended to remove the specific reference to the requirement for a monthly progress report in the commentary on disclosure, and the definition of "Monthly Progress Report" will be deleted from the definitions section.
- Policy 5.13 (Documents Required to be Posted) will be amended to delete the requirement to post Form 7.
- Policy 6.5 (Security Based Compensation Arrangements) will be amended to remove the requirement to report the exercise or cancellation of stock options or awards in Form 7.
- Policy 6.10 (Take-Over Bids and Issuer Bids) will be amended to remove the requirement to report cancellation of securities in Form 7 in connection with issuer bids.
- Policy 7.1 (Significant Transactions and Developments) will be amended to remove the requirement to include updated information relating to significant transactions and developments in Form 7, while retaining the obligation to include such information in the quarterly listing statement.
In addition, Form 7 itself will be repealed.
Impact on listed issuers
The Proposed Amendments will considerably reduce the regulatory obligations for Listed Issuers by eliminating a time-sensitive periodic report that the CSE has identified as containing no new material information for investors or regulators. Investors who have previously relied on Form 7 will need to access the relevant information through news releases, continuous disclosure documents, and other event-specific filings available through the CSE and SEDAR+. The CSE notes that these channels will continue to provide investors with access to all pertinent details, ensuring that transparency is maintained despite the removal of the redundant reporting requirement.
Listed issuers should note that all other existing timely disclosure and continuous disclosure obligations remain unchanged.
Effective date
The Proposed Amendments will become effective following regulatory approval by the Ontario Securities Commission and British Columbia Securities Commission. Comments on the Proposed Amendments must be submitted no later than July 6, 2026.
Key takeaway
For CSE Listed Issuers, the Proposed Amendments represent a welcome reduction in administrative burden. If approved, issuers will no longer need to prepare and file a Monthly Progress Report by the fifth trading day of each month. However, issuers should ensure that their existing timely disclosure practices and continuous disclosure filings remain robust, as investors will be expected to rely on those documents going forward. Issuers and their advisors who wish to provide input on the Proposed Amendments should submit their comments before the July 6, 2026 deadline.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Specific Questions relating to this article should be addressed directly to the author.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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