The Ontario Securities Commission has published an Issuer Guide (Staff Notice 51-720), which outlines eight key areas that should be considered by companies operating in emerging markets.
It sets out staff’s expectations for the directors and management of issuers operating in emerging markets. The guide also highlights several areas of risk that may warrant further scrutiny and sets out questions that directors and management should consider.
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“We have high expectations for issuers, regardless of where they are located, and look to directors and management to discharge their responsibilities fully,” says Howard I. Wetston, Q.C., Chair and CEO of the Ontario Securities Commission.
He adds, “This guide clearly articulates our expectations regarding compliance and we will continue to monitor this area closely in order to protect the integrity of our markets.”
In March 2012, the OSC published Staff Notice 51-719 Emerging Markets Issuer Review, following a review of Ontario reporting issuers listed on Canadian exchanges with significant business operations in emerging markets.
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The OSC is working with its regulatory partners in responding to the recommendations in Staff Notice 51-719. Specific next steps include the development of standards for underwriters, improvements to the audit function and enhanced listing processes to address the unique concerns raised by emerging market issuers.