Recommended Practices For Automatic Securities Disposition Plans

In December, the Canadian Securities Administrators (CSA) published guidance for issuers and insiders on the establishment, administration and disclosure of automatic securities disposition plans (ASDPs). Recommended practices set out in the guidance include oversight by the issuer, specific disclosure, a waiting period prior to the first transaction made under the ASDP, and meaningful restrictions for ASDP amendments, suspensions and terminations.

What you need to know

• The CSA's guidance generally is consistent with existing practices for ASDPs but provides a national framework that is aimed at enhancing transparency and reducing the potential for improper insider trades under ASDPs.