Although the five-day deadline for reporting insider transactions takes effect November 1, Quebec’s Autorité des marchés financiers won’t start penalizing those that miss the new deadline for another six months.

Under the previous system, insiders were required to report securities transactions to the System for Electronic Disclosure by Insiders within 10 days. As of November 1, reporting issuers and insiders will only have five days to report transactions, although the 10-day filing deadline for initial reports has not changed.

The AMF also announced that it is implementing an additional transition period for the levying of administrative monetary penalties for late insider reports. Until April 30, 2011, the AMF will not impose a penalty for a first offence committed by a reporting insider, provided that it is reported within 10 days.

The regulator says that since it began imposing administrative monetary penalties on insiders who file late, it has seen greater discipline by insiders, and the percentage of late reports fell from 8.6% in 2005 to 4% in 2010.

IE