Employment-related securities

What is an employment-related security?

A security (which includes shares, debt, derivatives and interests in investment partnerships) will be an employment-related security where the right or opportunity to acquire the securities (or interest in securities) is:

1. •

   available by reason of an employment of the person acquiring the securities (or interest) or any other person, or

2. •

   made available by a person's employer (or a person connected with a person's employer) (the deeming provision) unless such right or opportunity is made available:

   1. ◦

      by an individual, and

   2. ◦

      in the normal course of the domestic, family or personal relationships of that individual

For these purposes, employment includes a former, current and prospective employment.

The rules on employment-related securities apply very broadly because of the deeming provision. It means that the employment-related securities rules must be considered whenever shares are acquired in the employing company or a connected company.

For ...