The Ontario Securities Act was recently amended to broaden the
scope of insider trading liability and certain record-keeping
requirements. As of June 4, 2015, restrictions against insider
trading or tipping will apply generally to "issuers"
whose securities are publicly traded, and not just "reporting
issuers." Effectively, persons in a "special
relationship" with any issuer will therefore be prohibited
from purchasing or selling securities of the issuer with knowledge
of an undisclosed material fact or material change and from passing
such information on to others, subject to specific exemptions.
An additional amendment was made to section 19(1) of the
Securities Act to require that all "market participants"
(including registrants, persons or companies exempted from the
registration requirement, reporting issuers, and directors,
officers and promoters of reporting issuers) must keep books,
records and other documents as required to demonstrate compliance
with Ontario securities law. Previously, section 19(1) only
required records to be maintained to properly record a market
participant's business transactions and financial affairs, the
transactions that it executes on behalf of others and as may
otherwise be required under Ontario securities law.
The amendments come into force effective June 4, 2015 by virtue
of Bill 91, the Building Ontario Up Act
(Budget Measures), 2015, having received royal assent.
Certain other amendments were made to the Securities
Act and amendments were also made to the
Act. For further details, please see
Schedule 6 of Bill 91, which amends the Commodity
Futures Act, and Schedule 39 of Bill 91, which amends the
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