New OSC rule for distributions outside Canada

By Kristopher Miks and Kim Lawton ( May 24, 2018, 8:35 AM EDT) -- On March 31, 2018, the Ontario Securities Commission (OSC) adopted a new “distributions out” regime for Ontario-based issuers and security holders with respect to distributions of securities outside Canada. The OSC withdrew “Interpretation Note 1 Distribution of Securities Outside Ontario” (the Interpretation Note) and replaced it with OSC Rule 72-503 – Distributions Outside Canada (OSC Rule 72-503). OSC Rule 72-503 is a step toward a modernized regulatory environment for certain types of outbound distributions, providing a more clearly demarcated and streamlined process for securities compliance....