Canadian Securities Administrators Publish Final Amendments to Syndicated Mortgage Regime

by Barbara Hendrickson | Aug 11, 2020

The Canadian Securities Administrators (CSA) recently published final amendments that substantially harmonize the regulatory framework for syndicated mortgages in Canada.

These final amendments will:

• remove the prospectus and registration exemptions that currently apply to syndicated mortgages in certain jurisdictions to substantially harmonize the regulatory framework for distributions of syndicated mortgages in Canada,
• enhance investor disclosure through revisions to the offering memorandum prospectus exemption for offerings of syndicated mortgages under that exemption, and
• exclude syndicated mortgages from the private issuer exemption, ensuring they are offered under an exemption more appropriate for this type of security. executed by those banks that do not currently report any transactions to IIROC.

The amendments will come into force on March 21, 2021.

In parallel with the publication of the final amendments, certain jurisdictions are publishing material regarding local exemptions for qualified syndicated mortgages and for syndicated mortgages distributed to permitted clients or institutional investors. These are available for download from the websites of these jurisdictions.

For more information, please call Barbara Hendrickson at BAX Securities Law (416) 601 -1004. This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.