The Toronto Stock Exchange (TSX) is proposing changes to its listing rules, including introducing a new requirement for issuers to post certain disclosure documents on their websites and revising the disclosure that firms must make about executive compensation arrangements.
The proposed changes, which were published for comment in Thursday’s OSC Bulletin, include a new website disclosure requirement to make it easier for investors to find important disclosure documents online.
Although these documents are already publicly available on the SEDAR system, the TSX notes, they may be difficult to find on SEDAR “due to issuers’ differing practices for identifying and filing materials under consistent categories.” Furthermore, certain policies and corporate governance documents that would be covered under the new rule may not be available on SEDAR.
The TSX says the proposed requirements “are neither onerous nor costly” for issuers because “virtually all” TSX listed issuers already have websites. In addition, the disclosure will benefit shareholders and the market in general “by improving access to up-to-date documents.”
At the same time, the TSX is also proposing revisions to the requirements for firms to disclose certain elements of their securities-based compensation arrangements. It notes that these requirements were historically aimed at stock option plans but that compensation practices have evolved, so it’s proposing changes to better reflect current practices and plans.
The proposals would do away with certain requirements that are deemed duplicative or irrelevant; it would amend others; and introduce several new requirements, including a requirement for firms to disclose their “burn rate” and oblige them to make more specific disclosure about vesting rules.
The proposed amendments are out for a 30-day comment period, ending June 27.