Securities Law

BCN 2002/45 - BCSC announces results of Cost Benefit Analysis of CMA [BCN]

Published Date: 2002-11-04

The British Columbia Securities Commission has surveyed public companies across Canada and is publishing its cost-benefit analysis of the proposed Continuous Market Access system (CMA).

CMA benefits investors by improving disclosure. The survey findings show that it would also benefit issuers by significantly lowering their capital-raising costs. In brief:

  • Issuers would save $170 million in net present value over five years in reduced prospectus preparation and filing costs.
  • Issuers could get to market up to 56% faster, reducing the risk of missing market windows.
  • Prospectus costs for issuers listed on the Toronto Stock Exchange (TSX) are directly related to length - each page of additional prospectus disclosure costs a TSX issuer about $29,000.
  • Annual Information Form (AIF) costs would increase about 11%. This cost would be offset by the benefits of CMA if the issuer goes to market just once every 12 to 15 years.
  • Issuers spend 87% of their securities law compliance time on areas of regulation that are already uniform across Canada.
  • 77% of issuers surveyed support the CMA proposal.

The findings are discussed in detail in the paper Better Disclosure, Lower Costs: A Cost-Benefit Analysis of the Continuous Market System. The CMA proposal is contained in our June 5, 2002 paper entitled New Proposals for Securities Regulation. Both of these documents are found on our website at


If you have any questions about our cost-benefit analysis of CMA, please contact:

Christina Wolf
Economist, Deregulation Project
PO Box 10142, Pacific Centre
701 West Georgia Street
Vancouver BC V7Y 1L2
Tel: (604) 899-6860
Fax: (604) 899-6506

November 4, 2002

Brent W. Aitken, Vice Chair
Chair, Deregulation Project

This Notice may refer to other documents. These documents can be found at the B.C. Securities Commission public website at in the Commission Documents database or the Historical Documents database.