The Canadian Securities Administrators have decided to abandon the idea that executives at venture issuers must attest to the quality of their internal controls.

In March, the CSA published a proposed rule regarding issuers certification of their disclosure. The comment period expired in June, and the CSA received 53 comment letters.

Today, it said that after extensive review and consideration of the comments received, it has decided to make significant revisions to certain aspects of the proposal. As a result, the CSA will publish an amended version of the proposed rule for comment, and will not implement the rule on June 30, 2008, as previously planned.

“Among other changes, the amended version of the proposed materials will no longer require the CEO and the CFO of a venture issuer to certify that they have designed and evaluated the effectiveness of disclosure controls and procedures and internal control over financial reporting,” the CSA notice said. “The resulting certificate will be accompanied by an explanation for investors of how it differs from the full certificate required to be filed by reporting issuers other than venture issuers.”

“Venture issuers should be aware that the current rule remains in effect until a revised rule is adopted,” it added. “However, certain jurisdictions have issued or intend to issue exemptive relief orders to permit a venture issuer to file interim and annual certificates for periods ending on or after December 31, 2007 in a form that reflects the proposed change.”

Additionally, staff of the Ontario Securities Commission issued their own notice in conjunction with the CSA notice to describe how it will treat filings by venture issuers. “The commission has decided to propose the repeal of the current certificate requirement for venture issuers and propose instead that venture issuers file a basic annual certificate,” it says. “Accordingly, commission staff have concluded that, in these circumstances, it would not be appropriate or in the public interest for staff to consider a venture issuer that files a basic annual certificate … to be in default.”