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Definition: Short Form Prospectus Distribution System – SFPDS
Short form prospectus distribution system is a system which allows the firms to make an issue to produce the short form prospectus. A short form prospectus must contain any changes in the material which were not reported previously. There have been some of the issuers who continuously disclose the information & they have an opportunity to use the short form prospectus distribution system. This system is a quicker one as well as it is more cost effective compared to the conventional means of a prospectus distributing.
Basically, this is a standard system which is used by the regulators of Canada for distributing the changes to the prospectus for each & every issue of the security. Firms can use the short form prospectus distribution system if they continuously distribute the information to their investors & hence they do not want to go through the trouble to issue a totally new prospectus for every new issue & every change in an old issue.
The short form prospectus distribution system needs a lesser information as compared to the full prospectus otherwise would have needed. This system is governed by the applicable provincial laws & the securities act. So, it is a system of distributing the changes made to the prospectus of a security issued which enables the companies to produce a short form prospectus which has not been previously reported.