On March 5, 2020 the Canadian Securities Administrators (the "CSA") introduced a harmonized process for full reviews of prospectuses on a confidential pre-filing basis for non-investment issuers (the "Pre-File Process"). The concept of pre-filing a prospectus for comment is not new, however it was previously applied inconsistently by the various regulators. This prompted the CSA to respond by releasing its Staff Notice 43-310 - Confidential Pre-File Review of Prospectuses (for non-investment fund issuers) (the "Staff Notice") to help harmonize the pre-filing process, and to help issuers obtain more certainty and flexibility in prospectus offerings.
What are some of the benefits of participating in the Pre-File Process?
- The regulators will conduct the same level of review that they would for publicly filed preliminary prospectuses, which can help you:
- promptly respond to a regulator's questions or concerns, as well as provide more time to remedy same; and
- expedite the review of the issuer's proposed transaction.
- It can help establish a relationship between the issuer and the regulators.
- There is no additional cost to the issuer (in fact, Ontario is the only regulator that charges any fee at all, in the amount of $3,800, which will be then be credited against the filing fee for the publicly filed preliminary prospectus).
Download >> Get A Head Start - Avoid Prospectus Approval Delays By Pre-Filing A Prospectus On A Confidential Basis
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