In an era where governance and compliance is essential
and Canadian securities regulators are increasingly diligent in
their reviews, it is important that the entire eco-system involving
product due diligence, issuer information and governance be
automated in an on-line solution.
Issuers, exempt market dealers (EMDs) and analyst firms
need to work together seamlessly to reduce the time, money and
effort involved in current “know-your-product” (KYP) practices
including issuer-paid reports and EMD product due diligence to
facilitate a more effective and efficient process.
The KYP/Due Diligence Problem
Issuers often seek out an EMD to help them raise capital,
yet most issuers are not prepared for such an engagement. The
issuer is often in dire need of capital for their business while their
corporate information is often unorganized, poorly prepared, if
prepared at all, and not easily accessible in a centralize location.
These challenges makes it extremely difficult for issuers to
respond to due diligence inquiries made by EMDs and others in
connection with preparing for an offering.
Issuers also faces many challenges in providing information
that is highly confidential to its board of directors and officers,
By Oscar A. Joffre, Founder, President and C.E.O. BoardSuite Corp.
