Beginning this November, Canadian investors will have access to insider reports filed electronically over a the Internet, giving them more timely information about insider transactions.

Under National Instrument 55-102 — The System for Electronic Disclosure by Insiders (SEDI), which takes effect October 29, insiders will be required to file insider reports electronically starting November 13.

The public will also be able to access these reports as of this date.

“With the introduction of SEDI, insider reports will be publicly available on a more timely basis,” said Doug Hyndman, Chairman of the Canadian Securities Administrators. “Insiders will be able to file their reports on SEDI 24 hours a day, seven days a week.”

By filing through SEDI, an insider will satisfy the securities legislation of all CSA jurisdictions that have insider-reporting requirements. The electronic reports that must be filed are substantially the same as the current paper reports.

According to the CSA, filing deadlines will be harmonized in all jurisdictions and all insiders will be required to report trades within 10 days of the transaction.

Investors will be able to get insider reports 24 hours a day, seven days a week, at no charge. They will gain access to such reports such as: a weekly summary for all reporting issuers; the details of individual transactions by insiders; a list of registered insiders for each SEDI issuer; and an issuer “event history”, which includes a stock dividend, stock split, consolidation, amalgamation, reorganization, merger or other similar event.

Insiders will also benefit from using the new system. The CSA note that SEDI will provide a higher level of convenience for insiders, who need file only one report to comply with all provincial regulations, and can file 24 hours a day, seven days a week, subject to maintenance requirement. As well, insiders will not be required to pay any filing fees.

The $12.2 million SEDI system was developed for the CSA by CDS Inc. (a subsidiary of the Canadian Depository for Securities, Ltd.), which also developed and operates SEDAR.

Development costs and on-going operational costs will be recouped by an increase to the existing continuous disclosure fee applied to all reporting issuers that are required to file through SEDAR.

Information sessions will be held at the following locations to help issuers and insiders understand and comply with their electronic reporting requirements: Toronto – October 15; Calgary – October 22; Vancouver – October 23; and Montreal – October 24.