The Canadian Securities Administrators today announced that a new harmonized prospectus rule will come into force on March 17.

National Instrument 41-101 General Prospectus Requirements creates a comprehensive and transparent set of national prospectus requirements for all issuers including certain investment funds, the CSA says.

“NI 41-101 will make it easier for issuers to distribute securities across Canada by establishing one standard set of national prospectus rules,” says Jean St-Gelais, chairman of the CSA and president and CEO of the Autorité des marchés financiers.

“The new rule will maintain a high level of disclosure to investors while reducing costs for issuers wishing to offer securities in more than one jurisdiction.”

The new rule is based on three general principles:

> Harmonization and consolidation of the general prospectus requirements among Canadian jurisdictions.

> Harmonization of the general prospectus requirements with the continuous disclosure and short form prospectus disclosure regimes.

> Amendments to the principles underlying the general prospectus requirements identified as a result of regulatory reviews, applications for exemptive relief, or public comment and consultation.

The new rule is coming into force at the same time as Multilateral Instrument 11-102 Passport System and new national policies that streamline Canadian regulatory processes for prospectuses and exemptive relief applications.

NI 41-101 and related amendments are available on several CSA members’ web sites.