The Globe and Mail reports in its Saturday edition that Quebec's Autorite des marches financiers (AMF) approved an application in September from Bombardier executives to delay publicly reporting their insider trading transactions under a new automatic share sale program that has become the focus of a probe by the securities regulator.
A triple-bylined item led by Janet McFarland says that Bombardier asked for the reporting exemption after announcing Aug. 15 it had created an automatic share disposition program, which would allow 12 senior executives to exercise options and sell shares through an arms-length broker.
Share sales under automatic disposition programs have to be reported within five days, similar to other insider trading reports, but the Bombardier application approved in September by the AMF allows the trading to be disclosed just once annually, up to three months after the end of a company's fiscal year. Prior to that, investors have no way of knowing how many shares are sold at what price.
The Ontario Securities Commission has said it will consider allowing the disclosure exemptions if the insider can demonstrate the plan is automatic and does not allow for investment discretion.
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