OSC says companies need to strengthen insider reporting compliance

An Ontario Securities Commission study has found “material” insider reporting deficiencies in approximately 70 per cent from the 1,500 issuers reviewed.
 
“Overall, the review discovered that the compliance rate for insider reporting can be substantially improved, and that this improvement must happen across all reporting issuers,” the commission produced in a news release.
 
Approximately 200 reporting insiders filed new insider reports to address material deficiencies, and 150 reporting issuers filed correctional reports.
 
“Reporting insiders and reporting issuers should make use of the findings and guidance within this review to strengthen their compliance with insider reporting obligations,” said Huston Loke, director of corporate finance at the OSC. “Reporting issuers can enjoy a substantial role in enhancing compliance in this region by strengthening their insider trading policies.”
 
The report contains checklists that highlights key points for reporting insiders and issuers to think about.

The OSC may also be holding a seminar and webinar on insider reporting obligations on Feb. 24, 2016.