Mutual Reliance Review System
The Canadian Securities Administrators (CSA) is seeking input on a memorandum of understanding establishing a system to reduce costs and develop a more consistent system in the country.
The system, called the Mutual Reliance Review System (MRRS), applies to the filing of prospectuses, annual information forms, registration applications for advisers and self-regulatory organizations, and applications for discretionary relief.
One goal of mutual reliance is to improve the efficiency of capital markets by streamlining the review of filings to reduce costs. Under the MRRS, filers would also deal with only one securities commission in the country, legislative requirements and administrative practices would be harmonized across jurisdictions, and there would be consistent treatment of filers.
To obtain as much input as possible, the CSA is making available, for a 90-day comment period, a copy of the MRRS memorandum to its members. It is also publishing drafts of the MRRS for Prospectuses and Initial Annual Information forms and the MRRS for Registration.
A concept proposal regarding MRRS for Applications was issued earlier this year for comment. The comments are now being evaluated and a draft policy is being prepared.
The CSA also authorized the use of MRRS for Prospectuses and Initial Annual Information forms on a test basis and will soon solicit volunteers to participate in a testing phase.
One of the main priorities of the CSA over the past year and a half has been to develop mutual reliance review systems in these areas. It's expected the MRRS for these filings will be implemented early next year. The CSA then hopes to incorporate other types of filings, such as continuous disclosure, into the MRRS.
The CSA, comprising the 12 provincial and territorial securities regulatory authorities, provide a forum for co-operation in order to give Canada an efficient and effective securities regulatory system to protect investors, and to foster a fair, efficient and vibrant securities market.