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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
On December 10, 2020, the Canadian Securities Administrators
(CSA) issued Staff Notice 55-317
Automatic Securities
Disposition Plans (SN 55-317), providing recommendations
for issuers and insiders on the establishment, administration and
disclosure of Automatic Securities Disposition Plans (ASDPs).
SN 55-317 replaces the Ontario Securities Commission s
previous guidance on ASDPs included in OSC Staff Notice 55-701
BACKGROUND TO ASDPs
Under Canada s securities legislation, there is an exemption
from the general prohibition on insiders of an issuer trading
securities with knowledge of material non-public information (MNPI)
with respect to the issuer. The exemption is in respect of an automatic plan that was entered into by the person or
Ontario Securities Commission Provides Update On Guidance On Automatic Securities Disposition Plans And Automatic Securities Purchase Plans mondovisione.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mondovisione.com Daily Mail and Mail on Sunday newspapers.