Investment funds and publicly traded businesses in Canada are required to submit financial data to the securities regulators. The information is made public in order to give current and potential investors transparency into the company's financial situation. The System for Electronic Document Analysis and Retrieval (SEDAR) is a database system that filed and makes the financial reports easily available. Learn more about how you can use SEDAR below.
What is SEDAR ?
SEDAR stands for "System for Electronic Document Analysis and Retrieval". It is an electronic filing system used by Canadian public companies, mutual funds, and other securities issuers to submit regulatory filings to the Canadian Securities Administrators (CSA) and other securities regulatory authorities in Canada.
SEDAR provides investors and other market participants with access to public company filings, including financial statements, prospectuses, annual information forms, and other disclosure documents.
SEDAR is an important tool for investors who want to access public company filings, stay up-to-date on regulatory developments, and conduct research on investment opportunities in Canada. It allows for easy, efficient, and timely access to important information about public companies, which can help investors make informed investment decisions.
How Does Canada's SEDAR Work ?
SEDAR is an electronic filing system used by publicly traded companies in Canada to file financial reports and other regulatory documents with Canadian securities regulators. System for Electronic Document Analysis and Retrieval was established in 1997 by the Canadian Securities Administrators (CSA) and is operated and administered by CGI Information Systems and Management Consultants Inc., the filing service contractor appointed by CSA. Here's how SEDAR works :
- Issuers prepare their regulatory filings, including financial statements, prospectuses, and other disclosure documents, in accordance with Canadian securities laws and regulations.
- The issuers then use the SEDAR system to electronically file their documents with the CSA and other applicable securities regulators.
- Once the filings are received by SEDAR, they are processed and made available on the SEDAR website.
- Investors and other market participants can access public company filings by visiting the SEDAR website and searching for the desired company or document.
- SEDAR also provides tools for investors to monitor and track filings, including email notifications and RSS feeds.
SEDAR Canada is designed to be a user-friendly and efficient system for both issuers and investors. The system provides issuers with a streamlined and standardized process for submitting regulatory filings, while investors benefit from easy access to timely and comprehensive information about public companies.
Who Needs to File on SEDAR ?
In Canada, the following entities are required to file documents on System for Electronic Document Analysis and Retrieval :
1) Reporting issuers :
Reporting issuers are entities that have issued securities to the public and are required to comply with continuous disclosure obligations under Canadian securities laws. This includes corporations, partnerships, and other entities that have issued shares, bonds, debentures, or other types of securities to the public.
2) Investment funds :
Investment funds, including mutual funds, exchange-traded funds (ETFs), and other types of investment vehicles, are required to file disclosure documents on SEDAR.
3) Take-over bid circulars :
Entities making take-over bids for securities of a reporting issuer must file a take-over bid circular on SEDAR.
4) Issuers of certain types of exempt securities :
Certain types of securities may be exempt from prospectus requirements under Canadian securities laws. However, issuers of these securities may still be required to file disclosure documents on SEDAR.
It's important for entities that are required to file on SEDAR to be aware of their obligations and to ensure that their filings are submitted on time to avoid potential penalties or other regulatory consequences.
SEDAR Filing Requirements
Here are some of the System for Electronic Document Analysis and Retrieval filing requirements :
1) For Annual financial statements :
Publicly traded companies must file annual financial statements with Canadian securities regulators. These statements must be audited by an independent auditor and include a balance sheet, income statement, statement of cash flows, and notes to the financial statements.
2) For Management's discussion and analysis (MD&A) :
MD&A is a document that accompanies the annual financial statements and provides management's analysis of the company's financial performance, as well as its future prospects. It must include a discussion of the company's financial condition, results of operations, and liquidity and capital resources.
3) For Prospectus :
If a company wants to issue securities (such as shares or bonds) to the public, it must file a prospectus with Canadian securities regulators. The prospectus must provide detailed information about the company, its management team, its financial performance, and the securities being offered.
4) For Material change reports :
If a publicly traded company experiences a material change in its business, such as a major acquisition or a change in senior management, it must file a material change report with Canadian securities regulators. The report must describe the material change and its impact on the company.
5) For Insider reports :
Insiders of a publicly traded company, such as officers and directors, are required to file insider reports with Canadian securities regulators whenever they buy or sell securities of the company. The report must disclose the details of the insider's transaction.
6) For Early warning reports :
If a person or company acquires 10% or more of the outstanding shares of a publicly traded company, they must file an early warning report with Canadian securities regulators. The report must disclose the details of the acquisition and the acquirer's intentions with respect to the company.
7) For News releases :
Publicly traded companies often use SEDAR to distribute news releases to the public, such as announcements of quarterly earnings or major business developments. These news releases must be filed on SEDAR.
How to Use SEDAR ?
SEDAR filings Canada is a useful tool for investors and analysts who want to access financial reports and other regulatory filings from publicly traded companies in Canada. Here are the steps to use SEDAR :
1) Create an account :
To access SEDAR filings, you need to create an account with the Canadian Securities Administrators (CSA). You can visit the CSA website to create an account.
2) Access the SEDAR website :
Once you have registered for an account, you can access the SEDAR website. The website address is https://www.sedar.com/.
3) Login to your account :
Once you have created your account, you can login to SEDAR by clicking on the "Login" button on the SEDAR homepage and entering your username and password.
4) Search for filings :
You can search for filings by entering a company name, SEDAR number, or document type. You can also use the Advanced Search option to refine your search criteria.
5) View filings :
Once you have found the filings you are interested in, you can view them online or download them to your computer. SEDAR allows you to view filings in a variety of formats, such as PDF or HTML.
6) Monitor filings :
You can use SEDAR to monitor filings by setting up alerts for specific companies or document types. This will allow you to stay up-to-date with the latest regulatory filings.
7) Submit filings :
After these steps you can submit your financial reports and other regulatory documents with Canadian securities regulators.
8) Get help :
If you have questions about how to use SEDAR or need assistance with finding a particular filing, you can contact the CSA help desk. They can provide you with guidance on using the SEDAR system and answer any questions you may have.
SEDAR Filing Types
Here are some common types of System for Electronic Document Analysis and Retrieval filings :
1) Annual financial statements :
Publicly traded companies are required to file annual financial statements with Canadian securities regulators. These statements provide information on the company's financial performance over the past year.
2) Management's discussion and analysis (MD&A) :
MD&A is a document that accompanies the annual financial statements and provides management's analysis of the company's financial performance, as well as its future prospects.
3) Prospectus :
If a company wants to issue securities (such as shares or bonds) to the public, it must file a prospectus with Canadian securities regulators. The prospectus provides detailed information about the company, its management team, its financial performance, and the securities being offered.
4) Material change reports :
If a publicly traded company experiences a material change in its business, such as a major acquisition or a change in senior management, it must file a material change report with Canadian securities regulators.
5) Insider reports :
Insiders of a publicly traded company, such as officers and directors, are required to file insider reports with Canadian securities regulators whenever they buy or sell securities of the company.
6) Early warning reports :
If a person or company acquires 10% or more of the outstanding shares of a publicly traded company, they must file an early warning report with Canadian securities regulators.
7) News releases :
Publicly traded companies often use SEDAR to distribute news releases to the public, such as announcements of quarterly earnings or major business developments.
8) Management proxy circular :
A circular that a public company is required to file on SEDAR when it is soliciting proxies from its shareholders for its annual or special meeting of shareholders.
9) Annual Information Form :
A document that provides investors with information about the company's operations, properties, risk factors, and governance practices.
10) NI 43-101 Reports :
The resource sectors of Canada, which make up a sizeable portion of the nation's economy, highly regarded NI 43-101 reports.
SEDAR Filing Fees
The fees for filing documents on System for Electronic Document Analysis and Retrieval depend on the type of document being filed and the jurisdiction in which the issuer is located. Here are some general guidelines :
1) Annual financial statements Fee :
The fee for filing annual financial statements is $1,000 for Canadian issuers and $2,000 for foreign issuers.
2) Management's discussion and analysis (MD&A) Fee :
The fee for filing MD&A is $500 for Canadian issuers and $1,000 for foreign issuers.
3) Prospectus Fee :
The fee for filing a prospectus varies depending on the jurisdiction in which the issuer is located. In Ontario, for example, the fee ranges from $3,000 to $12,000 depending on the size of the offering.
4) Material change reports Fee :
There is no fee for filing a material change report.
5) Insider reports Fee :
The fee for filing an insider report is $100 per transaction.
6) Early warning reports Fee :
The fee for filing an early warning report is $1,000.
7) News releases Fee :
There is no fee for filing a news release.
These fees are subject to change and may vary depending on the specific circumstances of the issuer and the type of document being filed. It's always a good idea to check the latest fee schedule on the SEDAR website or consult with a securities lawyer or accountant for more information.
SEDAR Filing Deadlines
SEDAR (System for Electronic Document Analysis and Retrieval) filing deadlines depend on the type of document being filed and the regulatory requirements of the jurisdiction in which the issuer is located. Here are some general deadlines for 2023:
1) Annual financial statements :
Annual financial statements must be filed within 90 days of the end of the issuer's financial year.
2) Management's discussion and analysis (MD&A) :
MD&A must be filed at the same time as the annual financial statements.
3) Prospectus :
The filing deadline for a prospectus varies depending on the jurisdiction in which the issuer is located. In Ontario, for example, the prospectus must be filed at least 10 calendar days before the issuer intends to distribute securities.
4) Material change reports :
Material change reports must be filed as soon as practicable after the issuer becomes aware of the material change.
5) Insider reports :
Insider reports must be filed within 10 calendar days of the transaction.
6) Early warning reports :
Early warning reports must be filed within two business days of the acquisition of securities that trigger the reporting requirement.
7) News releases :
There is no specific deadline for filing news releases, but issuers are required to file them as soon as possible after the news has been released to the public.
It's important for issuers to be aware of these filing deadlines and to ensure that their filings are submitted on time to avoid potential penalties or other regulatory consequences.
Benefits of SEDAR
The advantages of System for Electronic Document Analysis and Retrieval include :
1) Streamlined and efficient filing process :
SEDAR allows issuers and other entities to submit documents electronically, which can save time and reduce costs associated with paper-based filings.
2) Increased accessibility :
SEDAR makes it easier for investors, analysts, and other stakeholders to access and review public disclosure documents filed by reporting issuers and other entities.
3) Enhanced transparency :
SEDAR helps to promote transparency and accountability in the Canadian capital markets by providing a centralized repository of public disclosure documents that can be accessed by anyone with an internet connection.
4) Improved regulatory compliance :
SEDAR helps issuers and other entities to comply with their continuous disclosure obligations under Canadian securities laws, by providing a platform for the electronic filing of required documents.
5) Enhanced market efficiency :
SEDAR can help to enhance market efficiency by improving the speed and accuracy of information dissemination and reducing information asymmetry between market participants.
Drawbacks of SEDAR
There are also some potential disadvantages of System for Electronic Document Analysis and Retrieval, including :
1) Technical issues :
Technical problems, such as system downtime or website glitches, can hinder the ability of issuers and other entities to file documents and access information on SEDAR.
2) Security risks :
While SEDAR is designed to provide secure access to public disclosure documents, there is always a risk of unauthorized access or hacking.
3) Accessibility barriers :
While SEDAR provides a centralized repository for public disclosure documents, some stakeholders may face barriers to accessing these documents due to factors such as language barriers or limited internet access.
4) Limited document types :
While SEDAR accepts a wide range of disclosure documents, there may be some types of documents that cannot be filed electronically and must be submitted in hard copy format.
5) Complexity :
The regulatory requirements surrounding the filing of disclosure documents on SEDAR can be complex and may require the assistance of legal or financial professionals.
Frequently Asked Questions
What types of companies are required to file documents with SEDAR?
Publicly traded companies in Canada, including corporations, income trusts, and limited partnerships, are required to file financial reports and other regulatory documents with SEDAR.
Is SEDAR free?
In addition to paying annual fees to each jurisdiction where they report, filers are required to pay a fee for using the SEDAR Canada system. There may be additional costs associated with submitting specific document types, such as a preliminary prospectus or a rights offering circular. Through SEDAR, fees are paid electronically.
What is the difference between Edgar and SEDAR?
SEDAR is a required document storage and retrieval system run by the Canadian Securities Administrators for Canadian public businesses. The Securities and Exchange Commission of the United States runs the EDGAR filing system.
Can individuals access SEDAR filings?
Yes, anyone can access SEDAR filings by creating an account with the Canadian Securities Administrators (CSA) and logging in to the SEDAR website.
Are SEDAR filings free to access?
Yes, SEDAR filings are free to access. However, some third-party providers may charge for access to SEDAR filings or provide value-added services.
How far back can I access SEDAR filings?
Canada's SEDAR filings are available for up to 10 years. However, some filings may be archived and no longer available online.
Can I file documents with SEDAR?
Yes, if you are a publicly traded company in Canada, you can use SEDAR to file financial reports and other regulatory documents with Canadian securities regulators.
What types of documents can be filed with SEDAR?
SEDAR accepts a wide range of documents, including annual financial statements, prospectuses, material change reports, insider reports, news releases, and more.
Can I receive alerts for new SEDAR filings?
Yes, you can use SEDAR to set up alerts for specific companies or document types. This will allow you to stay up-to-date with the latest regulatory filings.