News

For Immediate Release                                 
October 24, 2019 

Canadian Securities Regulators announce review of Automatic Securities Disposition Plans


Montreal and Toronto
– The Canadian Securities Administrators (CSA) today announced that it is undertaking a review of Automatic Securities Disposition Plans (ASDPs). ASDPs enable insiders to make preplanned sales of securities of an issuer through an arms-length administrator, according to a predetermined set of instructions.

“The CSA’s review aims to ensure that ASDPs remain a legitimate mechanism of trading by corporate insiders and do not undermine the fairness of our capital markets,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers.

Currently, provincial and territorial securities laws provide an insider trading defence for trades made under automatic plans; however, there is no national framework governing such plans. The CSA’s review of ASDPs will consider whether the regulatory framework should be enhanced and harmonized across Canada. Specifically, the review will examine whether these plans provide appropriate constraints on trading activities of insiders and will be informed by relevant international developments in this area.

The CSA’s review will also consider whether relief should continue to be granted from insider reporting for trades done under ASDPs and, if so, under what conditions. Such relief, while not requested by all issuers setting up ASDPs, has been granted several times in the last decade.

Until the CSA completes its review and updates the market on its conclusions, CSA staff are unlikely to recommend new insider reporting relief for trades done under ASDPs. Existing insider reporting relief will be unaffected.

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 Investor inquiries, please refer to your respective securities regulator. You can contact them here.
For media inquiries, please refer to the list of provincial and territorial representatives below or contact us at media@acvm-csa.ca.

- 30 -

For more information:

Kristen Rose  
Ontario Securities Commission
416-593-2336 

Brian Kladko
British Columbia Securities Commission
604-899-6713

Hilary McMeekin       
Alberta Securities Commission
403-592-8186

Sylvain Théberge
Autorité des marchés financiers
514-940-2176

Jason (Jay) Booth
Manitoba Securities Commission
204-945-1660

Sara Wilson
Financial and Consumer Services
Commission, New Brunswick
506-643-7045

David C. Harrison       
Nova Scotia Securities Commission
902-424-8586

Steve Dowling
Government of Prince Edward Island,  
Superintendent of Securities  
902-368-4550 

Renée Dyer
Office of the Superintendent of Securities
Newfoundland and Labrador
709-729-5661 

Rhonda Horte
Office of the Yukon Superintendent of Securities
867-667-5466

Jeff Mason
Nunavut Securities Office
867-975-6591 

Tom Hall
Office of the Superintendent of Securities
Northwest Territories
867-767-9305

Shannon McMillan
Financial and Consumer Affairs
Authority of Saskatchewan
306-798-4160