Ontario's recently passed budget bill contains amendments to the Securities Act to tighten up provisions respecting insider trading. As we discussed in an earlier post, the amendments change the definition of "person or company in a special relationship with the reporting issuer" in respect of those to whom the insider trading restrictions apply. Specifically, the definition has been expanded to include not only persons and companies associated with those proposing to make a take-over bid of a reporting issuer, but also those associated with a party considering or evaluating whether to make a take-over bid. Similar changes to the wording respecting those considering or evaluating whether to engage in business or professional activities were also made.
The budget bill also adds a new provision to the Commodity Futures Act to prohibit attempts at fraud and market manipulation.
The amendments came into force on June 21.