Canadian Securities Regulators Publish Guidance On Automatic Securities Disposition Plans

Canadian Securities Administrators (CSA) recently published Staff Notice 55-317 – Automatic Securities Disposition Plans ("Staff Notice 55-317"), which provides guidance to issuers and insiders on automatic securities disposition plans (ASDPs). The guidance focuses on adequate oversight by issuers, meaningful restrictions on adopting, amending, suspending or terminating an ASDP, and enhanced disclosure. Staff Notice 55-317 follows the CSA's review of ASDPs announced in October 2019, as described in our October 30, 2019 Update, Canadian Securities Regulators Announce Review of Automatic Securities Disposition Plans.

Staff Notice 55-317 supersedes the guidance with respect to ASDPs previously provided in OSC Staff Notice 55-701 – Automatic Securities Disposition Plans and Automatic Securities Purchase Plans ("OSC Staff Notice 55-701"). OSC Staff Notice 55-701, however, will continue to remain relevant for issuers and insiders that establish automatic securities purcha