What Is the Multi🍨jurisdictional Disclosure System (MJDS)?

The Multijurisdictional Disclosure System (MJDS) was adopted jointly in July 1991 by the U.S. Securities and Exchange Commission (SEC) and the 澳洲幸运5官方开奖结果体彩网:Canadian Securities Administrators.ꦆ The agreement makes it easier for companies on both🎃 sides of the border to list their stocks on exchanges in both countries.

The SEC notes that the MJDS allows eligible Canadian issuers to register securities under the Securities Act and to register securities and report under the Exchange Act by use of documents prepared largely in accordance with Canadian requirements.

The Multijurisdictional Disclosure System allows eligible Canadian companies to offer securities in the U.S. using a 澳洲幸运5官方开奖结果体彩网:prospectus that is largely prepared to meet C💞anadian disc✤losure requirements.

Understanding the Multijurisdi🐭ctional Disclosure System (MJDS)

The MJDS also allows such eligible issuers to comply with U.S. continuous reporting requirements by filing their Canadian disclosure documents with the SEC, 澳洲幸运5官方开奖结果体🉐彩网:subject to certain additional U.S. requiremen﷽ts. The companies also can file the Canadian versions of their routine disclosure documents with the SEC, again with the addition of a few more U.S. requirements.

A although the SEC reta🌳ins the right to review filings made under MJDS, it generally defers to the Canadian jurisdiction review, unless it has reason to believe there is a problem with the filing. Effectively, the MJDS acknowledges that the Canadian regulatorꦉy requirements are sufficient to protect U.S. investors.

Effecꦜt of the M💞ultijurisdictional Disclosure System

The effect of the MJDS agreement is to make it significantly easier for Canadian companies to raise funding through securities offerings in the U.S. as well as in Canada. It redu💯ces the cost, time, and administrative burdens associated with issuing a round of stock and reporting it under two separate disclosure regimes.

Canadian companies can raise such funding either in conjunction with issuing securities in Canada, or do it solely in the U.S. There is a reciprocal agreement that allows U.S. firms to raise funding through securitꦚies offerings in Canada, although it is used less frequently.

There are a number of requirements for Canadian companies to be eligible to use MJDS. These include a provision that the companies must already be publicly listed in👍 Canada. The public float must also be a certain size.

Eligibility Rඣules for Multijurisdictional Disclosure System

The MJDS is thus not an option for smaller Canadian companies and startups seeking to raise funds through 澳洲幸运5官方开奖结果体彩网:initial public offerings. These companies can still raise funding in the U.S., but they are not eligible for the streamlined system available under ♔MJDS.

The MJDS allows for companies to raise funds with any type of 澳洲幸运5官方开奖结果体彩网:securities with the exception of certain 澳洲幸运5官方开奖结果体彩网:derivative instruments.