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New guidance on automatic securities disposition plans (ASDPs)
published by the Canadian Securities Administrators on December 10,
2020 focuses on the reduction of the potential for improper insider
trades and enhancing transparency around the establishment and use
of ASDPs.
Automatic Securities
Disposition Plans (the Staff Notice) notably sets out the
following recommendations:
Oversight by the issuer when establishing and using ASDPs to
seek to ensure compliance with securities legislation and any
insider trading or internal policies of the issuer.
Establishment of a term for the ASDP that is sufficiently long