September 27, 2006
Latest Update on Canadian Compliance and Disclosure Activities: CSA Notice 52-315 and CSA Notice 52-316
Our last update on Canadian compliance initiatives was on August 28, 2006 with an overview of MI 52-109 (sort of a SOX 302 jab with a modest 404 hook). The previous blog entry was entitled "Canadian Internal Control over Financial Reporting Rules are Kicking In" - Click here to review it.
Well, it appears, based on a very recent study that just as the CEO/CFO certifications, and related MD&A discussions, associated with the Design stage of ICFR of MI 52-109 are kicking in, that all is not well in the land of Disclosure Controls & Procedures (DC&P). Click here to read more about CSA Staff Notice 52-315: Certification Compliance Review. If you are one of the company's in the blue portion of the charts you are not going to endear yourself to the provincial regulators. In particular, some of you on the TSX Venture Exchange are in danger of putting the "Ad" back into Venture. Just imagine what the lawyers at the various securities regulators are thinking, "So if it is like this with DC&P, what will it be like with ICFR? Do you think anyone is reading our Notices? Maybe we should bring back MI 52-111 and have the "externals" take them to the rink for a bit of an ICFR attestation workout!" Perhaps I'm overreacting, or just want the regular hockey season to get started, but what would happen if the regulators went in and did a random, detailed review of DC&P effectiveness evaluations of 5% of the TSX and TSX Venture listings (5% is about 180 companies)? Any bets on how many would be going to the penalty box?
Quick, for $10.00 who can give me a succinct analysis of the difference between DC&P and ICFR? Time's up! Don't worry there are lots of consulting groups that will charge you several zeros north of $10.00 to help you through the overlap between these two pillars of the financial compliance community. Venn diagram heaven.
So that brings up the next development. CSA Staff Notice 52-316: Certification of Design of Internal Control over Financial Reporting. Click here to read more. The Notice relates to certification of the Design of ICFR if one is aware of weaknesses in ICFR and expectations with respect to discussing the ICFR weakness and remediation in the annual MD&A. There will be additional updates on this topic as it broadly affects your MI 52-109 activities in the very near future.
Stay tuned!
If you are a Canadian-based filer needing to affordably comply with either SOX or MI 52-109 please visit the website of our exclusive Canadian distributor, Thomson Carswell, at http://www.compliancepartner.ca/ to learn about Compliance Partner(TM), plus their new product for the Mining Sector, Compliance Partner(TM) - Mining Edition.
Thomson Carswell is also providing some web-based seminars for TSX and TSX Venture companies on the topic of MI 52-109 and recent changes during the months of October and November 2006. Please click here for more information.
If your company is based in the U.S., or outside of North America, and needs to comply with SOX efficiently and without the drama please visit http://www.issuescentral.com/ to learn more about the Compliance Playbook(TM).
Well, it appears, based on a very recent study that just as the CEO/CFO certifications, and related MD&A discussions, associated with the Design stage of ICFR of MI 52-109 are kicking in, that all is not well in the land of Disclosure Controls & Procedures (DC&P). Click here to read more about CSA Staff Notice 52-315: Certification Compliance Review. If you are one of the company's in the blue portion of the charts you are not going to endear yourself to the provincial regulators. In particular, some of you on the TSX Venture Exchange are in danger of putting the "Ad" back into Venture. Just imagine what the lawyers at the various securities regulators are thinking, "So if it is like this with DC&P, what will it be like with ICFR? Do you think anyone is reading our Notices? Maybe we should bring back MI 52-111 and have the "externals" take them to the rink for a bit of an ICFR attestation workout!" Perhaps I'm overreacting, or just want the regular hockey season to get started, but what would happen if the regulators went in and did a random, detailed review of DC&P effectiveness evaluations of 5% of the TSX and TSX Venture listings (5% is about 180 companies)? Any bets on how many would be going to the penalty box?
Quick, for $10.00 who can give me a succinct analysis of the difference between DC&P and ICFR? Time's up! Don't worry there are lots of consulting groups that will charge you several zeros north of $10.00 to help you through the overlap between these two pillars of the financial compliance community. Venn diagram heaven.
So that brings up the next development. CSA Staff Notice 52-316: Certification of Design of Internal Control over Financial Reporting. Click here to read more. The Notice relates to certification of the Design of ICFR if one is aware of weaknesses in ICFR and expectations with respect to discussing the ICFR weakness and remediation in the annual MD&A. There will be additional updates on this topic as it broadly affects your MI 52-109 activities in the very near future.
Stay tuned!
If you are a Canadian-based filer needing to affordably comply with either SOX or MI 52-109 please visit the website of our exclusive Canadian distributor, Thomson Carswell, at http://www.compliancepartner.ca/ to learn about Compliance Partner(TM), plus their new product for the Mining Sector, Compliance Partner(TM) - Mining Edition.
Thomson Carswell is also providing some web-based seminars for TSX and TSX Venture companies on the topic of MI 52-109 and recent changes during the months of October and November 2006. Please click here for more information.
If your company is based in the U.S., or outside of North America, and needs to comply with SOX efficiently and without the drama please visit http://www.issuescentral.com/ to learn more about the Compliance Playbook(TM).
