Document background
The Non-Reliance Letter Due Diligence Report is a critical document in Canadian business transactions, particularly in mergers, acquisitions, and significant investment decisions. It is used when a professional services firm or due diligence provider needs to restrict the distribution and reliance on their findings to specific parties. The letter acknowledges that while the original due diligence report was prepared for a specific client and purpose, other parties may seek to rely on or access this information. Under Canadian law, this document helps manage professional liability while ensuring compliance with securities regulations and professional standards. It typically includes specific references to applicable Canadian legislation, professional standards, and regulatory requirements, and is particularly important in transactions involving public companies or regulated industries.
