Shortened Insider Reporting Deadline Comes into Effect on November 1
October 25, 2010
Jonathan R. Grant
This is a reminder that, beginning on November 1, 2010, insiders will have less time to file insider reports when disclosing a change in the beneficial ownership of securities of a reporting issuer or a change in the insider’s interest in a related financial instrument involving a security of a reporting issuer. The deadline for filing those reports will be reduced from 10 days to five days, effective November 1. The 10-day delay for filing initial insider reports will not change.
The revised deadline is part of the new insider reporting requirements found in National Instrument 55-104 Insider Reporting Requirements and Exemptions, which came into effect on April 30, 2010. The Canadian Securities Administrators (CSA) provided a six-month transition period for the new 5-day deadline following the entry into force of NI 55-104 in order to provide insiders and issuers adequate time to adjust to the new accelerated reporting requirements.
A summary of the insider reporting requirements in National Instrument 55-104 can be found in our previous articles "Canadian Securities Administrators Announce New Insider Reporting Regime" and "CSA Staff Notice: Frequently Asked Questions for New Insider Reporting Requirements".