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ARTICLE · 04 JANUARY 2021

CSA Staff Notice 55-317: Automatic Securities Disposition Plans (ASDPs)

On December 10, 2020, the Canadian Securities Administrators (CSA) published CSA Staff Notice 55-317 – Automatic Securities Disposition Plans (Staff Notice 55-317) available here.

CanadaCorporate/Commercial Law

On December 10, 2020, the Canadian Securities Administrators (CSA) published CSA Staff Notice 55-317 – Automatic Securities Disposition Plans (Staff Notice 55-317) available here. Staff Notice 55-317 provides guidance for issuers and insiders on the establishment, use and administration of ASDPs.

Staff Notice 55-317 supersedes the prior guidance with respect to ASDPs set out in OSC Staff Notice 55-701 – Automatic Securities Disposition Plans and Automatic Securities Purchase Plans (OSC Staff Notice 55-701), which was issued in 2006.

What is an ASDP?

Under Canadian securities laws, persons in a "special relationship" with an issuer, including insiders, are generally restricted from trading in the issuer's securities while in possession of material non-public information (MNPI). Insiders may be further limited in their ability to trade as a result of trading blackouts and other trading restrictions contained in a reporting issuer's insider trading policies. 

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