CIRI Advocates for Greater Transparency of Share Ownership

The Canadian Investor Relations Institute (CIRI) today submitted its recommendations to the Canadian Securities Administrators (CSA) to adopt changes in the thresholds for reporting share ownership, which would improve the transparency and efficiency of the Canadian capital market.

In its submission, CIRI recommends that the CSA:

• lower the beneficial ownership threshold under the Early Warning System to five percent (5%) from 10 percent (10%);
• include equity equivalent derivatives and securities lending positions in the Early Warning System threshold calculation;
• require disclosure of share ownership when shareholders fall below the Early Warning System threshold;
• require beneficial owners to disclose if there are subsequent one percent (1%) incremental increases or decreases in the share ownership;
• require that these disclosures be made before trading hours commence the following business day; and
• consider a future review of the Alternative Monthly Reporting system.

CIRI’s recommendations are in response to the CSA’s Proposed Amendments to National Instrument 62-103 Early Warning System and Related Take-Over Bid and Insider Reporting Issues published in March, with July 12, 2013 as the deadline for comments. CIRI initially advocated for lowering the Early Warning System threshold in February 2011.

CIRI members are encouraged to submit a Letter of Support to the CSA on behalf of their companies. For convenience, a template letter has been provided via email from Yvette Lokker.