Insights Header image
Insights Header image
Insights Header image

OSC Seeks Extension of Relief for Well-known Seasoned Issuers

May 31, 2023 Capital Markets & Securities Bulletin 2 minute read

Introduction and Background

On May 18, 2023, the Ontario Securities Commission (the “OSC”) announced local OSC Rule 44-502 Extension to Ontario Instrument 44-501 Certain Prospectus Requirements for Well-known Seasoned Issuers in Ontario (the “Rule”).

The Rule extends the blanket relief issued on December 6, 2021 by Ontario Instrument 44-501 Certain Prospectus Requirements for Well-known Seasoned Issuers (Interim Class Order) (the “OSC Blanket Order”) by an additional 18-month period.

As discussed in a previous bulletin, the OSC Blanket Order allows an issuer that meets the well-known seasoned issuer (“WKSI”) qualifications and certain conditions to file a final base shelf prospectus with the OSC and obtain a receipt for that prospectus on an accelerated basis without first filing a preliminary base shelf prospectus. The OSC Blanket Order was issued as part of a larger initiative by the Canadian Securities Administrators (the “CSA”) to provide temporary exemptions for WKSIs through local blanket orders that are substantively harmonized across the country.

The OSC Blanket Order took effect on January 4, 2022, and will cease to be effective on July 4, 2023.

Next Steps

The OSC delivered the Rule to the Minister of Finance on or about April 26, 2023, who may approve or reject the Rule or return it for further consideration within 60 days. Subject to ministerial approval on or before June 20, 2023, the Rule will come into force on July 4, 2023. If the Minister approves the Rule after June 20, 2023, the Rule will come into force 15 days following approval. If the Minister takes no action, it will come into force on July 10, 2023.

The OSC is reviewing options for a more permanent solution and any amendments to implement WKSI accommodations will be adopted by the CSA on a coordinated basis through the normal rule-making procedures.

Any member of McMillan’s Capital Markets & Securities Group would be pleased to discuss the WKSI program and whether it is right for your organization.

by Cynthia Sargeant and Arjin Choi

A Cautionary Note

The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

© McMillan LLP 2023

Insights (5 Posts)View More

Featured Insight

Double the Trouble: The BCCA Refuses to Strike Duplicative Class Actions Before Certification

Class action bulletin. Summary of InvestorCOM Inc. v. L'Anton, 2025 BCCA 40, a recent decision of the BCCA on the issue of duplicative class actions.

Read More
Feb 12, 2025
Featured Insight

Recent Developments in the Canadian Psychedelics Industry

This bulletin provides an update on recent developments in Canada's psychedelics industry.

Read More
Feb 12, 2025
Featured Insight

Company Ordered to Cease Using Facial Recognition Technology to Monitor Access to its Facilities: Overview of Quebec Privacy Regulator’s Decision

In this bulletin, we provide an overview of the Quebec privacy regulator's decision in ordering the Company to cease using its facial recognition technology.

Read More
Feb 11, 2025
Featured Insight

Significant Changes to the Québec Mining Regime are Now in Force

Significant amendments to the Québec mining regime tabled by the Government in the spring 2024 came into force late last year.

Read More
Feb 11, 2025
Featured Insight

Thumbs Up or Signed Deal? Court Affirms Emoji as Valid Acceptance of Agreement

We discuss the Saskatchewan Court of Appeal's decision on whether a “thumbs up” emoji sent through a text message is acceptance of a contract.

Read More
Feb 10, 2025