CIRI Advocates for Greater Transparency of Share Ownership

Jul 09, 2013, 11:19 ET from Canadian Investor Relations Institute

TORONTO, July 9, 2013 /CNW/ -- The Canadian Investor Relations Institute (CIRI) today submitted its recommendations to the Canadian Securities Administrators (CSA) to adopt changes in the thresholds for reporting share ownership, which would improve the transparency and efficiency of the Canadian capital market.

CIRI's submission illustrates that Canada's early warning threshold, i.e. the level at which shareholders must publicly disclose their ownership position, and the reporting of subsequent incremental ownership changes are too high, are out of step with other developed capital markets and therefore may be negatively impacting the Canadian capital market.

In its submission, CIRI recommends that the CSA:

  • lower the beneficial ownership threshold under the Early Warning System to five percent (5%) from 10 percent (10%);
  • include equity equivalent derivatives and securities lending positions in the Early Warning System threshold calculation;
  • require disclosure of share ownership when shareholders fall below the Early Warning System threshold;
  • require beneficial owners to disclose if there are subsequent one percent (1%) incremental increases or decreases in the share ownership;
  • require that these disclosures be made before trading hours commence the following business day; and
  • consider a future review of the Alternative Monthly Reporting system.

"These changes in share ownership disclosure would provide the market with increased transparency regarding significant holdings of issuers' securities that may affect control of that issuer. This is information that all market participants are entitled to know. Increased transparency would contribute to a more fair and efficient Canadian capital market," said Yvette Lokker, President & CEO, CIRI.

CIRI's recommendations are in response to the CSA's Proposed Amendments to National Instrument 62-103 Early Warning System and Related Take-Over Bid and Insider Reporting Issues published in March, with July 12, 2013 as the deadline for comments. CIRI initially advocated for lowering the Early Warning System threshold in February 2011.

About CIRI

CIRI is a professional, not-for-profit association of executives responsible for communication between public corporations, investors and the financial community. CIRI contributes to the transparency and integrity of the Canadian capital market by advancing the practice of investor relations, the professional competency of its members and the stature of the profession. With close to 600 members and four chapters across the country, CIRI is the voice of IR in Canada. For further information, please visit

SOURCE Canadian Investor Relations Institute