Insider Reporting Requirement For Equity Monetization Transactions Now In Force
|Area||Corporate and Commercial, Corporate Finance and Securities|
In our Corporate Securities Update of March 5, 2003, we outlined an initiative proposed by the Canadian Securities Administrators in response to concerns that the existing insider reporting requirements may not apply to derivative-based transactions. On February 28, 2004, Multilateral Instrument 55-103 - Insider Reporting for Certain Derivative Transactions (Equity Monetization) (the "Rule") came into force in Ontario, Alberta, Saskatchewan and Manitoba and imposes a reporting requirement on insiders of reporting issuers in respect of derivative-based transactions, including equity monetization transactions. The Rule is expected to come into force shortly in other provinces.