January 19, 2016
Requirements for raising foreign capital under the Cooperative Capital Markets Regulatory System’s proposed Capital Markets Act have raised objections from a group of institutional investors, who have released a letter describing the added layer of compliance as potentially burdensome to some firms. A Globe and Mail report on this development features comment from partner Glen Johnson, whose expertise includes securities regulation and corporate finance. Below is an excerpt of the article.
Lawyer Glen Johnson of Torys LLP, who works on domestic and cross-border securities offerings, said investors in the United States are already protected by their own regulations, so nothing is gained from dual Canadian oversight.
“A quality issuer that has resources and has demand or interest from a U.S. big-name underwriter, they will find a way through this and they will manage,” Mr. Johnson said. “But it’s a question of whether we have really designed the best regulatory model we can, or have we just put something together without having taken a step back and fully canvassing what the options are.”
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