(June 27 – 16:30 ET) – The Ontario Securities Commission has published new rules proposing a Web-based system for insider reporting.

The System for Electronic Data on Insiders (SEDI) would apply to reporting issuers, other than mutual funds, that are required to file disclosure documents in electronic format. Insiders of these issuers would now have to file their insider reports in electronic form through SEDI.

The new rule is being proposed as a national rule, setting out the basic requirements and procedures for electronic filing. Insiders will be required to file an amended insider profile within 10 days of a material change to the profile. Insider reports will be required within 10 days of a trade. Provinces, such as B.C., whose requirements aren’t up to snuff would change their rules to comply.

The CSA expects that electronic filing will enable it to pre-enter certain information, significantly reducing the number of deficient insider reports filed.

The SEDI system is being developed by the CSA, with the Canadian Depository for Securities acting as project manager. The CSA may also provide a link in SEDI to Early Warning Reports and Alternative Monthly Reports filed in SEDAR.

The CSA currently plans to have the new system up and running by December 4. It welcomes comments until September 14.
-IE Staff