The Canadian Securities Administrators haspublished advance notice of adoption of a new insider reporting regime that aims to streamline how insiders report their securities transactions to the public.

National Instrument 55-104 Insider Reporting Requirements and Exemptions, the companion policy, and related amendments were released Friday. They set out the framework and guidelines for a new insider reporting regime.

The new regime generally consolidates the main insider reporting requirements and exemptions in a single national instrument, except in Ontario where the main insider reporting requirements will remain in the Ontario Securities Act.

“Nevertheless, the substance of the requirements for insider reporting will be the same across the CSA jurisdictions,” the CSA says.

“We expect the new insider reporting regime will make it easier for issuers and insiders to understand their obligations, while promoting timely and effective compliance,” says Jean St-Gelais, chairman of the CSA and president & CEO of Quebec’s Autorité des marchés financiers.

“It should also provide more useful and consistent information to investors and others who assess insider activity,” he says.

Among other things, the CSA says the new regime

• 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;

• shortens the reporting deadline for subsequent reports from 10 days to five calendar days after the trade for most transactions, following a six-month transition period;

• simplifies and brings consistency to stock-based compensation reporting requirements;

• gives issuers the option to file reports on stock-based compensation for insiders; and

• establishes a more focused and more timely insider reporting system.

Subject to obtaining all necessary ministerial or governmental approvals, the new insider reporting regime will take effect on April 30.

IE