INSIDER REPORTING REDUCEDEffective November 1, 2010 - INSIDER REPORTING DEADLINE REDUCED TO 5 DAYS
MONTREAL, Oct. 22 2010 /CNW Telbec/ - The Autorité des marchés financiers (AMF) reminds reporting issuers and insiders that the five-day deadlinefor reporting transactions in the System for Electronic Disclosure byInsiders (SEDI) will take effect on November 1, 2010.
As a result, the six-month transition period in respect of the newfive-day reporting deadline will no longer apply. Under the previoussystem, insiders were required to report securities transactions within10 days. The 10-day filing deadline for initial reports has not changedhowever.
Consequently, reports not filed within the prescribed five-days will bepublished in the late insider report section of the weekly AMF Bulletin(Appendix 3 - Liste des déclarations d'initiés déposées hors délais).
Transition Period
The AMF is also announcing that it is implementing an additionaltransition period in respect of administrative monetary penalties forlate insider reports. Therefore, for the period from November 1, 2010to April 30, 2011, the AMF will not impose an administrative monetarypenalty for a first offence committed by a reporting insider who fails to file a change incontrol over the securities of a reporting issuer within five-days ofthe transaction, provided that the insider reported the change incontrol no later than 10 days after the transaction.
Effective Information Measures
Since January 1, 2006, the AMF has imposed administrative monetarypenalties on insiders who file late insider reports. Four years afterthe introduction of these penalties, the AMF has observed greaterdiscipline by insiders with respect to reporting their transactions viaSEDI. The percentage of late reports fell sharply from 8.6% in 2005 to4% in 2010.
The AMF urges reporting issuers and insiders to ensure timelyimplementation of oversight of compliance with the 5-day reportingdeadline. The AMF will continue to update reporting insiders to ensurethat they comply with their obligation to report transactions withinthe prescribed deadline.