SIMA urges practical, proportionate changes to bid and derivatives rules
TORONTO – (August 12, 2026) – The Securities and Investment Management Association (SIMA) is calling on the Canadian Securities Administrators (CSA) to take a practical and proportionate approach to proposed changes to Canada’s issuer-bid, take-over bid, and beneficial-ownership reporting rules.
SIMA supports modernizing the framework and improving transparency into equity-equivalent derivatives. However, the industry association says the rules should protect investors without restricting legitimate capital markets, hedging, and risk-management activities.
“The regulatory framework should focus on the purpose and effect of a transaction rather than the particular derivative structure used,” said Andy Mitchell, President and CEO of SIMA. “Clear, practical and proportionate rules will protect investors without creating unnecessary operational burdens or weakening Canada’s capital markets.”
SIMA’s key recommendations:
- Increase the proposed 12-month aggregate limit for securities acquired under the selective repurchase exemption from 5 per cent to 10 per cent of the outstanding securities of the relevant class.
- Increase the proposed limit from five sellers and five transactions to 10 sellers and 10 transactions over a 12-month period.
- Make the exemption available to eligible issuers, whether or not they have an operative normal- course issuer bid.
- Limit disclosure requirements to derivative positions connected to a control-related transaction or objective.
- Consider a shorter or materiality-based lookback period instead of a six-month period in every circumstance.
Financial intermediaries, swap providers, and other counterparties should not automatically be treated as part of a bidder group or as acting jointly when they have no direct economic or strategic interest in the transaction. If they are only providing routine services, such as standard financing, hedging, market-making, or derivative activities, they should not be required to make extra public disclosures.
About SIMA
The Securities and Investment Management Association empowers Canada’s investment industry. It is the leading voice for the securities and investment management industry, which oversees approximately $4.5 trillion in assets for over 20 million investors and Canadian capital markets participants. SIMA members – including investment fund managers, investment and mutual fund dealers, capital markets participants, and professional service providers – are committed to creating a resilient, innovative investment sector that fuels long-term economic growth and creates opportunities for all Canadians.
For more information
Christine Harminc
Director, Communications and Public Affairs
charminc@sima-amvi.ca
416-309-2313
