In the Matter of National Instrument 31-103 Registration Requirements and Exemptions and Crosbie & Company Inc. and Certain Other Limited Market Dealers that have become Exempt Market Dealers under Subsection 16.3(2)
of NI 31-103

In jurisdictions where there is no Limited Market Dealer (LMD) registration category, persons or companies that would be required to register as Exempt Market Dealers (EMDs) have a one year transition period before they must become registered in the new category. However, in Ontario and Newfoundland and Labrador, LMDs automatically became registered as EMDs as soon as NI 31-103 Registration Requirements and Exemptions (NI 31-103) came into force on September 28, 2009. These “mapped-over EMDs” thus became immediately subject to the financial statement and capital calculation delivery requirements and the client statement delivery requirements in NI 31-103 without the benefit of a transition period.

The Director has made a decision that provides transitional relief to mapped-over EMDs from:

1. the requirements in subsection 12.12(1) to deliver audited annual financial statements and prescribed capital calculations for a period of one year, consistent with the other solvency-related transitional relief provided in section 16.3; and

2. the requirements in section 14.14 to deliver certain client statements for a period of two years, consistent with that which section 16.17 provides for mutual fund dealers.

The relief is only available to the extent a mapped-over EMD is not registered in another category that requires delivery of financial statements or client statements during the applicable transition period. 

Full text of original Decision dated September 28, 2009

Full text of amended Decision dated February 19, 2010