Back to all publications
Jan 16, 2018

Canadian Securities Administrators to Consider Disclosure-Based Regulatory Approach after U.S. Rescinds the “Cole Memorandum”

By Richard M. Kimel and Tyler Brent

On January 12, 2018, the Canadian Securities Administrators (the “CSA”) announced that they were considering their disclosure-based regulatory approach for issuers with U.S. marijuana-related activities.

The CSA’s regulatory approach was most recently articulated on October 16, 2017, through the publication of Staff Notice 51-352 Issuers with U.S. Marijuana-Related Activities. The Staff Notice took a largely disclosure-based regulatory approach to issuers with U.S. marijuana-related activities. However, the Staff Notice also stated that the CSA would re-examine their views in the event that the U.S. federal government’s forbearance-based enforcement approach (derived from the “Cole Memorandum”) were to change. Additional details regarding the Staff Notice can be found in our previous article linked here.

On January 4, 2018, U.S. Attorney General Jeff Sessions issued the “Marijuana Enforcement Memorandum,” which rescinded the Cole Memorandum. As the CSA’s viewpoints articulated in the Staff Notice were predicated upon the continued existence of the Cole Memorandum, issuers should not be surprised by a potential revision to the position enunciated in the Staff Notice. 

The CSA has not released specific details on any revision to its position as of the date of this article. However, further communication is expected shortly and we will keep you apprised. 

Areas of Expertise

Related Industries

Related Publications

Publications Article
COVID-19 Travel Restrictions and Tax Residency Relief By Louise R. Summerhill and Jesse L. Waslowski May 22, 2020 On May 19, the Canada Revenue Agency released guidance respecting potential unexpected tax reside... On May 19, the Canada Revenue Agency released guidance respecting potential unexpected tax residency consequences resulting from the travel restrictions around COVID-19.
Publications Article
Tax Limitation and Appeal Periods Extended By Louise R. Summerhill, Josh Kumar and Jesse L. Waslowski May 22, 2020 As part of the government’s ongoing response to the pandemic, draft legislation was proposed on M... As part of the government’s ongoing response to the pandemic, draft legislation was proposed on May 19, 2020, to extend limitation periods and appeal deadlines related to tax reassessments and disputes. Similarly, the Tax Court of Canada further extended its closure period.
Publications Article
Rent Relief Update #2- The Canada Emergency Commercial Rent Assistance Program By Kenneth Pimentel, Monty Warsh, Marco Gammone and Faruk Gafic May 21, 2020 By way of update to our latest publication entitled “Rent Relief Update – The Canada Emergency Co... By way of update to our latest publication entitled “Rent Relief Update – The Canada Emergency Commercial Rent Assistance Program,” the Canada Mortgage and Housing Corporation has released an updated publication that provides further clarification on the details of CECRA and tem...