OSC Releases Guidelines for Companies Operating in Emerging Markets
|Lawyer||Jonathan Feldman, Neill May|
|Area||Corporate Finance and Securities, Asia Practice|
On November 9, 2012, the Ontario Securities Commission (OSC) published Staff Notice 51-720 - Issuer Guide for Companies Operating in Emerging Markets (the “Guide”), the latest step in a series of actions taken by the regulator focusing on emerging market issuers. In the wake of a number of high profile failures of issuers listed on Canadian exchanges with operations located in emerging markets, the OSC:
- initiated and reported upon a review of concerns related to emerging market issuers (see our March 20, 2012 update - OSC Staff Reports on Concerns Identified in Review of “Emerging Market Issuers”); and
- communicated its commitment to intensify oversight of, and to crack down on, emerging market issuers, with particular focus on gatekeepers such as directors, auditors, underwriters and others to determine whether those gatekeepers have performed their role in protecting investors (see our October 31, 2012 update - Ontario Securities Commission to Target “Gatekeepers” of Emerging Market Issuers Listed on Canadian Exchanges).
The Guide provides direction to officers and directors of emerging market issuers on eight risk areas identified by the regulator, which areas are likely to be the focus of the securities commission’s increased scrutiny.