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ARTICLE · 05 DECEMBER 2019

CSA To Review Automatic Securities Disposition Plans

On October 24, 2019, the Canadian Securities Administrators (CSA) announced that it is undertaking a review of automatic securities disposition plans (ASDPs).

CanadaCorporate/Commercial Law

On October 24, 2019, the Canadian Securities Administrators (CSA) announced that it is undertaking a review of automatic securities disposition plans (ASDPs). ASDPs are plans that enable the pre-planned sales of securities through an arm's length third party in accordance with a pre-determined set of instructions.

According to the CSA, the review will:

  • Examine whether these plans provide appropriate constraints on trading activities of insiders, which will include a review of relevant international developments in the area;
  • Consider whether relief should continue to be granted from insider reporting for trades made under ASDPs and, if so, under what conditions; and
  • Consider whether the regulatory framework should be enhanced and harmonized across Canada.

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