The usually busy Centre Street was devoid of traffic Saturday as downtown Calgary dealt with the heaviest flooding in decades from the nearby Bow River. Lower left, a flooded Chinatown. Upper left Calgary’s tallest tower, the Bow, just behind the Telus building.ANDY CLARK/Reuters
Calgary companies are getting a break – briefly – on making some of their required regulatory filings if they have faced problems due to recent flooding or downtown building closures.
The Alberta Securities Commission issued a notice Thursday – known in regulator-ese as ASC Notice 51-703: Flood related late interim and annual filings – telling companies the commission will delay taking regulatory action for five business days for companies with a head office in Alberta that are late with their regulatory filings.
The affected documents include annual filings due by June 28 or interim and annual filings due by July 2. The ASC said the exemption does not cover required "timely" disclosures, such as disclosure of material changes.
Many companies were affected by a mandatory closure of buildings in Calgary's downtown business core that began last Friday, and a number of buildings still remained closed as of Thursday.
Calgary Mayor Naheed Nenshi has urged Calgarians to work at home this week if possible so city crews can complete building inspections, asking the city to "make Canada Day the first day Calgary goes downtown."
The ASC said it has received inquiries from some companies asking about a filing deadline extension, so decided to announce a broad time extension.
The commission said companies that can't file within the five-day extended window can also apply individually for further extensions. "However, issuers are advised that such an application would need to be made as soon as possible," the commission added.
The ASC typically takes regulatory action when companies miss filing deadlines by first placing the company in default on its daily reporting issuer list, and then initiating a process to cease-trade the company's shares. The regulator also imposes fines for late filings.
"If the Alberta issuer makes the required filing on or before the fifth business day following the date of the required filing, staff will not pursue the regulatory action referred to above in respect of that filing," the ASC said in its notice.
The ASC said it has confirmed with other provincial securities commissions in Canada that they also will delay action for five days, but said some may still charge a late filing fee.
Despite the time extension, companies will still technically be in default until filings have been submitted, the ASC said. That means they cannot file prospectuses for issuing new securities while in default.
(Janet McFarland is a Globe and Mail Business Reporter.)
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Janet McFarland