A special task force has been set up by the Canadian Securities Administrators and self-regulatory organizations to examine illegal insider trading in the Canadian marketplace.

The task force will focus its attention on issues such as leaked information preceding major company announcements, “off-shore” accounts and the improper use of nominee accounts to obscure links between insiders and traders, a spokesperson for the group said today. Members of the task force, which has a longer-term mandate to form a comprehensive package of reforms aimed to reduce insider trading, will reconvene in mid-November after project teams have scoped out work plans and timetables. Their work is expected to include in-depth research and analysis, benchmarking best practices and policies. They will be conducting focus groups and establishing relevant metrics.

Members of the task force steering committee include:
> Paul Bourque, senior vice president, member regulation, Investment Dealers Association

> Jean Lorrain, director of enforcement, CVMQ

> David Linder, executive director, Alberta Securities Commission

> Mike Watson, director of enforcement, Ontario Securities Commission

> Steve Wilson, executive director, B.C. Securities Commission

> Charles Caty, vice chair, Market Regulation Services Inc.

Tom Atkinson, president and CEO of Market Regulation Services chairs the task force’s steering committee. He said investor protection and the fairness, efficiency and integrity of the capital markets – “certainly among the safest markets in the world” – could be seriously undermined if the public perception of illegal insider trading continues to grow.”

“We’re not sure if the problem is actually as large as the public perception – so one of our key tasks will be to determine just how widespread illegal insider trading is, and then how best to address it,” said Douglas Hyndman, CSA chair. “Perception or reality – we need to find out which one it is. Unfortunately, in this case, perception may be seen as reality. Perceptions can move markets.”