Insider Trading Prohibition To Be Broadened

The Securities Act (Ontario) (OSA) is expected to be amended to include a prohibition on recommending the purchase or sale of securities of an issuer where the person or company making the recommendation is in a "special relationship" with the issuer and has knowledge of a material fact or material change with respect to such issuer that has not been generally disclosed. Currently, section 76 of the OSA provides that a person in a "special relationship" with the issuer includes:

• a person or company who is an insider, affiliate or associate of the issuer, or a person or company that is considering, evaluating or proposing to make a take-over bid for the securities of the issuer (or considering, evaluating or proposing to enter into another similar transaction with the issuer, such as a reorganization, merger or business combination);