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Canadian Securities Regulators Seek Comment on Proposed Changes to Registration Rules for Dealers, Advisers and Investment Fund Managers

Dec 05, 2013

The Canadian Securities Administrators (CSA) are seeking public comment on proposals to amend the regulatory framework for firms and individuals who trade in securities, provide investment advice or manage investment funds. The regulatory framework for registrants is contained in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) and related instruments (collectively, the National Registration Rules).
 
“Both investors and industry participants will benefit from the proposed amendments, which include general improvements to the registrant regulatory framework as well as address specific problems identified during the monitoring of the application of the National Registration Rules,” said Bill Rice, Chair of the CSA and President and Chief Executive Officer of the Alberta Securities Commission. “The proposed amendments aim to improve compliance and investor protection by bringing further clarity to regulators’ expectations for registrants operating under National Registration Rules.”
 
The CSA introduced the National Registration Rules in 2009 as a means to harmonize, modernize and streamline registration policies across Canada. Since implementation, the CSA have monitored the operation of the National Registration Rules and maintained an ongoing dialogue with registrants. The proposed amendments, which range from technical adjustments to more substantive matters, are the latest result of this ongoing monitoring and dialogue, and aim to increase overall efficiency.
 

The proposals contain several key amendments that aim to:

  • enhance and clarify certain proficiency requirements for registrants. This includes guidance on what is considered to be relevant investment management experience, as well as the addition of an experience component to the proficiency requirements for chief compliance officer of dealer firms;
  • limit the activities that may be conducted under the exempt market dealer category of registration;
  • codify a sub-adviser exemption, as well as a short-term debt exemption, amend certain existing exemptions in NI 31-103, and add interpretative guidance about certain exemptions;
  • streamline the CSA review process of notices of acquisitions of shares or assets of registered firms, and clarify the filing requirements;
  • provide additional guidance relating to conflicts of interest in relation to registered representatives that serve on the boards of reporting issuers or have outside business activities; and
  • update and improve the registration forms.
For more information on these amendments, please refer to the CSA Notice. Copies of the proposed changes to the National Registration Rules are available on the websites of CSA members. The comment period is open until February 28, 2014.
 
The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
 
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For more information:

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Sylvain Théberge
Autorité des marchés financiers
sylvain.theberge@lautorite.qc.ca

Alison Walker
British Columbia Securities Commission
604-899-6713

Tanya Wiltshire
Nova Scotia Securities Commission
902-424-8586

Denny Huyghebaert
Financial and Consumer Affairs Authority of Saskatchewan
306-787-5548

Carolyn Shaw-Rimmington
Ontario Securities Commission
416-593-2361

Andrew Nicholson
Financial and Consumer Services Commission, New Brunswick
506-658-3021

Janice Callbeck
The Office of the Superintendent of Securities, P.E.I.
902-368-6288

Rhonda Horte
Office of the Yukon Superintendent of Securities
867-667-5466

Ann Hall
Northwest Territories Securities Office
867-920-3318