Learn more about what the ASC is doing to support market participants and investors.
Dec 10, 2020
Montreal and Toronto - The Canadian Securities Administrators (CSA) today published guidance for issuers and insiders on the establishment, use and disclosure of automatic securities disposition plans (ASDPs). ASDPs enable insiders to make preplanned sales of securities of an issuer through a dealer or an arms-length administrator, according to a predetermined schedule and set of instructions.
“This guidance will help issuers and insiders understand how they can reduce the potential for improper insider trades under automatic securities disposition plans,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “The recommended best practices set out in the guidance are also intended to enhance the transparency of trading by insiders, which assists issuers and insiders in managing market perception of trades made under these plans.”
This guidance was developed further to the CSA’s review of ASDPs announced on October 24, 2019. Recommended best practices set out in the guidance include oversight by the issuer, a waiting period prior to the first transaction made under the plan, and meaningful restrictions for amendments, suspension and termination of an ASDP.
CSA Staff Notice 55-317 Automatic Securities Disposition Plans (CSA Staff Notice) can be found on CSA members’ websites.
In the interest of promoting transparency of trading by insiders, staff of the CSA remain, as announced on October 24, 2019, unlikely to recommend insider reporting relief for trades under ASDPs.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co- ordinates and harmonizes regulation for the Canadian capital markets.
For more information:
Kristen Rose Ontario Securities Commission 416-593-2336 firstname.lastname@example.org
Brian Kladko British Columbia Securities Commission 604-899-6713 email@example.com
Jason Booth The Manitoba Securities Commission 204-945-1660
Shannon McMillan Financial and Consumer Affairs Authority of Saskatchewan 306-798-4160
David Harrison Nova Scotia Securities Commission 902-424-8586
Renée Dyer Office of the Superintendent of Securities Newfoundland and Labrador 709-729-4909
Rhonda Horte Office of the Yukon Superintendent of Securities 867-667-5466
Theresa Schroder Senior Advisor, Communications 403.297.4231
Sylvain Théberge Autorité des marchés financiers 514-940-2176
Marissa Sollows Financial and Consumer Services Commission, New Brunswick 506-643-7853
Steven Dowling Government of Prince Edward Island Superintendent of Securities 902-368-4550
Jeff Mason Nunavut Securities Office 867-975-6591
Matthew Yap Office of the Superintendent of Securities, Northwest Territories 867-767-9260