OSC Commences Emerging Market Issuers Regulatory Review

TORONTO – The Ontario Securities Commission (OSC) announced today it is conducting a targeted review of Ontario reporting issuers listed on Canadian exchanges and having significant business operations in emerging markets.

The review is designed to closely examine the disclosure of certain issuers from those markets and the vehicles through which these companies have accessed the Ontario market. OSC staff will also focus on the role of the auditors and underwriters in this process, who act as important gatekeepers with responsibilities under Ontario securities law.

“This targeted review is part of our ongoing effort to protect investors and strengthen market integrity,” said OSC Chair and Chief Executive Officer Howard Wetston, Q.C. “Issuers who access our market, and the advisors who support them, have important responsibilities to investors and we will take regulatory action as warranted to ensure these responsibilities are met.”

The review will be undertaken by OSC staff from several branches, including Corporate Finance, Market Regulation and the Office of the Chief Accountant. Enforcement will be involved as appropriate. The OSC has already contacted selected issuers and their advisors and will continue to do so over the coming weeks. In addition, the OSC will contact the exchanges and other organizations, including the Investment Industry Regulatory Organization of Canada and the Canadian Public Accountability Board for information where required.

Once the review is completed, the OSC will consider whether the findings have broader policy implications for the regulatory regime in Ontario, given the increasingly globalized marketplace.

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