OSC probe uncovers insider reporting problems at most public companies
Ontario's securities regulator says 70 per cent of the publicly traded companies it examined last year had deficiencies in their insider reporting.
People who are considered insiders of a publicly traded company must file reports disclosing information about transactions involving the company's securities.
One of the aims of the legislation is to deter insider trading, which occurs when company insiders profit from having information material to a company that others don't have access to.
The Ontario Securities Commission examined insider reports from 100 publicly traded companies and 1,500 insiders to assess whether they complied with securities regulations.
The commission's review, which was conducted between June and September 2015, resulted in roughly 200 insiders filing new reports to address deficiencies and 150 insiders filing correctional reports.
The review included records that were filed between January 2014 and September 2015.
Huston Loke, the commission's director of corporate finance, says companies should use the findings to strengthen their compliance with insider reporting obligations.