Canadian securities watchdogs appeal to U.S. ambassador over pending insider trading law

financialpost.com:

Canadian securities regulators are appealing to the U.S. ambassador to Canada to intercede in legislation they say would create duplication, confusion and expense for insiders of Canadian companies that list their shares in the United States.

In a letter to U.S. ambassador David Cohen, Canadian Securities Administrators chair Stan Magidson said a proposed U.S. Senate bill on national defence will remove a key exemption for foreign issuers that saves directors, senior officers and significant shareholders at Canadian public companies from having to disclose their trades in both countries. The letter, dated Nov. 7, was posted on LinkedIn by Ontario Securities Commission chief executive Grant Vingoe on Nov. 13.

“As comparable insider reporting requirements already exist in Canada, removal of the … exemption would trigger significant and unnecessary additional reporting costs in the U.S. for Canadian companies that are foreign private issuers, typically after listing in both Canada and the United States,” Magidson said in the letter.

He added that this change leading to reporting in both countries could lead to “considerable confusion” and inconsistent filings across jurisdictions.

Magidson said Canadian regulators would appreciate any action Cohen could take in “conveying the potential impacts of this legislative change to the appropriate staff,” noting that it did not seem appropriate for the securities authorities to send their comments directly to the sponsor of the legislation.

The letter also went some way to explaining why the removal of the exemption governing foreign company insiders showed up in national defence legislation.

“We understand that this provision originated with the Holding Foreign Insiders Accountable