OSC Releases Results of Insider Reporting Compliance Review

TORONTO, Feb. 18, 2016 /CNW/ - The Ontario Securities Commission (OSC) today published OSC Staff Notice 51-726 Report on Staff's Review of Insider Reporting and User Guides for Insiders and Issuers, which sets out the results of its review of the continuous disclosure records and insider filings of 100 reporting issuers whose principal regulator is Ontario.

Staff examined the filings of approximately 1,500 reporting insiders on the System for Electronic Disclosure by Insiders (SEDI) to assess compliance with National Instrument 55-104 Insider Reporting Requirements and Exemptions and related securities legislation. Overall, the review found that the compliance rate for insider reporting can be substantially improved, and that this improvement needs to happen across all reporting issuers. Staff found material insider reporting deficiencies in approximately 70% of the issuers reviewed, with approximately 200 reporting insiders filing new insider reports to address material deficiencies and 150 reporting insiders filing correctional reports.

"Reporting insiders and reporting issuers should use the findings and guidance in this review to strengthen their compliance with insider reporting obligations," said Huston Loke, Director of Corporate Finance at the OSC. "Reporting issuers can play a significant role in enhancing compliance in this area by strengthening their insider trading policies."

Staff have included checklists in the notice (Appendix B and C) which highlight key points that reporting insiders and issuers should consider in complying with insider reporting requirements. 

In addition, reporting insiders and issuers are encouraged to attend the OSC's SME Institute seminar/webinar on insider reporting obligations on February 24, 2016. For more information please visit http://www.osc.gov.on.ca/en/Companies_upcoming-seminars_index.htm

OSC staff will continue to monitor and review insider reporting as part of its continuous disclosure program to both educate and identify reporting insiders who fail to report. 

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets and confidence in the capital markets. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at http://www.osc.gov.on.ca

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SOURCE Ontario Securities Commission

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