Of over 100 websites reviewed by the BCSC (British Columbia Securities Commission) and OSC (Ontario Securities Commission) they have found over 80% of websites were found to not be in full compliance. With such a high percentage it becomes worthwhile to take a closer look and try to find factors that may be behind this.
Key findings in the report were related to:
• Naming the qualified person (QP)
• Preliminary economic assessments (PEA)
• Mineral resources and mineral reserves defined
• Exploration targets
• Historical estimates
No company wakes up and says to themselves that they don't want to be in compliance all of a sudden, so what has been going on? With the down turn in the markets it appears staffing at many issuer's is as thin as it's ever been. As a result you have more people wearing more hats at the office which can naturally lead to more oversight. Therefore, many daily tasks tend to be passed down the line to less experienced individuals who may not be up to date with all the disclosure requirements.
The result in many cases has been heavy fines to some companies along with being flagged onto the radar of many of the regulatory bodies.
The simple solution we provide to our clients at Sandman Media is to lean on us (their web firm) to conduct the audits and report back with detailed findings and solutions. This takes pressure off recruiting, bringing in expensive consultants, carrying additional vendors and so forth.