Proposed Amendments to Regulation 1015 under the Securities Act
Bill or Act:
Summary of Proposal:
The 2016 Ontario Budget communicated the government's intention to propose changes to the Securities Act to improve protections for investors by broadening insider trading offences to prohibit recommending or encouraging the purchase or sale of securities with knowledge of material undisclosed information.
The Jobs for Today and Tomorrow Act (Budget Measures), 2016 would amend section 76 of the Securities Act to include a prohibition on a person or company in a special relationship with an issuer with inside information from recommending or encouraging another person or company to trade in securities of the issuer. These proposed legislative amendments come into force on a day to be named by proclamation of the Lieutenant Governor.
The government is consulting on proposed amendments to Regulation 1015 under the Securities Act that would update the defences provided in section 175 relating to insider trading offences to accord with the legislative changes to section 76 of the Securities Act that have not yet been proclaimed.
Housekeeping amendments are also proposed to update the drafting of section 175 and to replace references to a "reporting issuer" with references to an "issuer" as a result of legislative changes to section 76 of the Securities Act.
Please see the attachment for further details.
April 25, 2016
Comments Due Date:
June 9, 2016
95 Grosvenor Street, Frost Building North