Insider Reporting Regime In Line For An Overhaul

The Proposals

The Canadian Securities Administrators (the "CSA") have published for comment proposals for significant changes to the insider reporting regime across Canada. The key changes include the following:

• Reduction in the scope of persons required to file insider reports - Under the existing framework, insider reporting applies to significant (10% plus) shareholders and to insiders who are directors and/or officers and who in the normal course have access to material undisclosed information. Under the CSA's proposals insider reporting obligations would be imposed only on a truly core group of insiders – significant shareholders would continue to have to report, but persons with access in the ordinary course to material nonpublic information would only be required to report if they exercise, or have the ability to exercise, significant power or influence over the business, operations, capital or development of the reporting issuer (or a major subsidiary).