DEFINITION of 'Multijurisdictional Disclosure System - MJDS'
A disclosure system that enables eligible cross-border securities offerings to be governed by the disclosure requirements of the issuer's home country. The multijurisdictional disclosure system reduces the expensive duplication of disclosure requirements and regulatory filings that arises when issuers register securities offerings in foreign domiciles.
It often referred to as the Canada-U.S. multijurisdictional disclosure system.
BREAKING DOWN 'Multijurisdictional Disclosure System - MJDS'
For example, under the Canada-U.S. multijurisdictional disclosure system (MJDS), an eligible Canadian issuer can offer securities in the United States using a Canadian prospectus that is subject to review only by Canadian securities regulators, and not by the U.S. Securities and Exchange Commission (SEC).
The Canada-U.S. MJDS, adopted in 1991 by the SEC and Canadian securities regulatory authorities, eliminated many of the major disincentives for Canadian issuers offering securities in the U.S., and vice versa. The adoption of the MJDS facilitated increased cross-border transactions, including mergers and takeovers.