On December 10, 2020, the Canadian Securities Administrators (CSA) and the Ontario Securities Commission (OSC) announced that it was publishing guidance for issuers and insiders on the establishment, use and disclosure of automatic securities disposition plans (ASDPs). ASDPs enable insiders to make preplanned sales of securities of an issuer through a dealer or an arms-length administrator, according to a predetermined schedule and set of instructions.
This guidance follows the CSA’s previous guidance on ASDPs announced on October 24, 2019. Recommended best practices set out in the guidance include oversight by the issuer, a waiting period prior to the first transaction made under the plan, and meaningful restrictions for amendments, suspension and termination of an ASDP. According to the announcement and as announced on October 24, 2019, staff of the CSA remain unlikely to recommend insider reporting relief for trades under ASDPs.
Please see: https://www.osc.gov.on.ca/documents/en/Securities-Category5/csa_20201210_55-317_automatic-securities-disposition-plans.pdf
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.