Canadian Securities Regulators Announce New Insider Reporting Regime

The National Instrument 55-104 Insider Reporting Requirements and Exemptions, the companion policy, and related amendments set out the framework and guidelines for a new insider reporting regime that among other things:

• reduces the number of insiders required to file insider reports to a core group that have the greatest access to material undisclosed information and the greatest influence over the reporting issuer;
• beginning November 1st, 2010, shortens the reporting deadline for subsequent reports from 10 days to five calendar days after the trade for most transactions;
• simplifies and brings consistency to stock-based compensation reporting requirements;
• gives issuers the option to file reports on SEDI on stock-based compensation for insiders; and
• establishes a more focused and more timely insider reporting system, which should benefit investors and other market participants who use the system.

Subject to obtaining all necessary ministerial or governmental approvals, the new insider reporting regime will take effect on April 30, 2010. The published materials are available on the websites of various CSA members.