5 - Ongoing Requirements for Issuers and Insiders

Decision Information

Decision Content

                       


CSA Notice and Request for Comment

 

Proposed Amendment to National Instrument 55-104

Insider Reporting Requirements and Exemptions

Relating to Investment Funds and Certain Structured Products

 

 


April 9, 2026

Introduction

The Canadian Securities Administrators (the CSA or we) are publishing for a 60-day comment period a proposed amendment (the Proposed Amendment) to Part 9 of National Instrument 55-104 Insider Reporting Requirements and Exemptions (NI 55-104).

The comment period will end on June 8, 2026.

The text of the Proposed Amendment is contained in Annex A of this notice and will also be available on websites of CSA jurisdictions, including:

www.osc.ca

www.asc.ca

www.bcsc.bc.ca 

www.fcaa.gov.sk.ca

www.fcnb.ca

www.lautorite.qc.ca

www.mbsecurities.ca

nssc.novascotia.ca

Substance and Purpose

The Proposed Amendment is intended to clarify the insider reporting regime applicable to transactions involving investment funds, and certain structured products, such as structured notes, American Depositary Receipts (ADRs) and Canadian Depositary Receipts (CDRs), that are based on securities of the reporting insider’s reporting issuer.

The Proposed Amendment would  clarify that the existing exemption in paragraph 9.7(g) of NI 55-104 cannot be relied upon by reporting insiders in connection with transactions in investment funds or certain structured products.

Background

We are publishing the Proposed Amendment at this time following recent interest in certain investment funds for which securities of a reporting issuer would be expected to form a material component of the investment fund’s market value, such as single-issuer exchange traded funds. Single-issuer exchange traded funds were launched in the Canadian market in August 2025. Since that time, other funds have been launched that track major Canadian reporting issuers.

 

In addition, structured products that provide alternative means to obtain economic exposure to a reporting issuer that is equivalent to investing in the securities of a reporting issuer have been made available. For example, structured notes, ADRs and CDRs have been launched for a wide variety of issuers.

Summary of the Proposed Amendments

The insider reporting exemption in paragraph 9.7(f) of NI 55-104 is intended for reporting insiders who acquire or dispose of securities of an investment fund that may hold securities of the reporting insider’s reporting issuer. This exemption includes the important condition that “securities of the reporting issuer do not form a material component of the investment fund's market value”. The exemption in paragraph 9.7(g) of NI 55-104 was not intended to be available for investment funds. The Proposed Amendment would exclude investment funds from the exemption in paragraph 9.7(g). As a result, the exemption in paragraph 9.7(f) would be the relevant exemption for acquisitions or dispositions of securities of investment funds by reporting insiders.

 

In addition, the Proposed Amendment would clarify that the insider reporting exemption in paragraph 9.7(g) does not apply in respect of certain structured products in respect of which the value or market price of the product is derived from, referenced to or based on an underlying security, interest, benchmark or formula that is, or includes as a material component, a security of the reporting issuer or a related financial instrument involving a security of the reporting issuer, such as structured notes, ADRs or CDRs. This is consistent with the policy intent underlying the exemption.

Local Matters

Annex B is being published in any local jurisdiction that is proposing related changes to local securities laws, including local notices or other policy instruments in that jurisdiction. It also includes any additional information that is relevant to that jurisdiction only.

Request for Comments

 

Please submit your comments in writing on or before June 8, 2026.

Submit your comments here: https://www.securities-administrators.ca/consultations/csa-notice-and-request-for-comment-proposed-amendment-to-national-instrument-55-104-insider-reporting-requirements-and-exemptions-relating-to-investment-funds-and-certain-structured-products/. By using the link, your comments will be submitted to the following CSA members.

 

British Columbia Securities Commission

Alberta Securities Commission

Financial and Consumer Affairs Authority of Saskatchewan

Manitoba Securities Commission

Ontario Securities Commission

Autorité des marchés financiers

Financial and Consumer Services Commission of New Brunswick

Superintendent of Securities, Department of Justice and Public Safety, Prince Edward Island

Nova Scotia Securities Commission

Office of the Superintendent of Securities, Service NL

Northwest Territories Office of the Superintendent of Securities

Office of the Yukon Superintendent of Securities

Superintendent of Securities, Nunavut

 

By submitting your comments through the link above, you are also submitting your comments to:

 

Me Philippe Lebel

Corporate Secretary and Executive Director, Legal Affairs

Autorité des marchés financiers

Place de la Cité, tour PwC

2640, boulevard Laurier, bureau 400

Québec (Québec) G1V 5C1

Fax: 514 864-8381

E-mail: consultation-en-cours@lautorite.qc.ca

 

We cannot keep submissions confidential because securities legislation in certain provinces requires publication of the written comments received during the comment period. Comments received will be posted on the websites of each of the Alberta Securities Commission at www.asc.ca, the Autorité des marchés financiers at www.lautorite.qc.ca and the Ontario Securities Commission at www.osc.ca. You should not include personal information directly in comments as the comments will be published and publicly available. It is important that you state on whose behalf you are making the submission.

Contents of Annexes

Annex A:    Proposed Amendment to National Instrument 55-104 Insider Reporting Requirements and Exemptions

 

Annex B:    Local Matters

Questions

Please refer your questions to any of the following:

Ontario Securities Commission


Paul Hayward

Senior Legal Counsel

Corporate Finance Division

416-593-8288

phayward@osc.ca 

 

Tegan Raco

Legal Counsel II

Corporate Finance Division

416-263-7717

traco@osc.ca

 


British Columbia Securities Commission

Noreen Bent

Chief, Corporate Finance Legal Services

604-899-6741

nbent@bcsc.ca

 

 

James Leong

Senior Legal Counsel, Corporate Finance

604-899-6681

jleong@bcsc.bc.ca

 


Alberta Securities Commission


Lanion Beck   
Senior Legal Counsel, Corporate Finance
403-355-3884
lanion.beck@asc.ca

Melissa Yeh

Legal Counsel, Corporate Finance

403-355-4181

melissa.yeh@asc.ca


 

Financial and Consumer Affairs Authority of Saskatchewan

Caroline Smith

 

 

 

Senior Legal Counsel, Securities Division

306-787-9492

caroline.smith@gov.sk.ca 

 

 

 

 



Manitoba Securities Commission

Patrick Weeks

Deputy Director – Corporate Finance

204-945-3326

patrick.weeks@gov.mb.ca

 

Autorité des marchés financiers


Livia Alionte
Senior Continuous Disclosure Coordinator,
Supervision of Issuers and Insiders

514 395-0337, ext. 4336

livia.alionte@lautorite.qc.ca

 

Charlotte Verdebout

Senior Policy Advisor,

Regulatory Policy

514-395-0337, ext. 4339

charlotte.verdebout@lautorite.qc.ca


Nova Scotia Securities Commission

Jack Jiang

Securities Analyst, Corporate Finance

902-424-7059

jack.jiang@novascotia.ca

 

Financial and Consumer Services Commission of New Brunswick

Ray Burke

Manager, Corporate Finance

(506) 643-7435

ray.burke@fcnb.ca

 

 


 

 

Annex A

Proposed Amendment to National Instrument 55-104
Insider Reporting Requirements and Exemptions

 

  1. National Instrument 55-104 Insider Reporting Requirements and Exemptions is amended by this Instrument.

 

  1. Part 9 is amended by adding the following section after section 9.7:

 

Exemption not available

 

9.8 Paragraph 9.7(g) does not apply to the acquisition or disposition of a security, or an interest in a security, of an issuer if

(a)  the issuer is an investment fund, or

(b)  the value or market price of the security, or the interest in a security, is derived from, referenced to or based on an underlying security, interest, benchmark or formula that is, or includes as a material component, a security of the reporting issuer or a related financial instrument involving a security of the reporting issuer..

 

3.  This Instrument comes into force on •.

 

 

 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.