Securities Law & Instruments

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CSA Staff Notice 31-339
Omnibus/Blanket Orders Exempting IIROC and MFDA Registrants from Certain Provisions of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations



May 29, 2014

Introduction

All CSA members have issued parallel orders that provide Investment Industry Regulatory Organization of Canada (IIROC) member firms with relief from certain provisions of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103), which form part of the Client Relationship Model Phase 2 (CRM2). All CSA members except Québec have issued parallel orders that provide Mutual Fund Dealers Association of Canada (MFDA) member firms with relief from certain CRM2 provisions of NI 31-103. Those CRM2 provisions of NI 31-103 do not apply to IIROC and MFDA member firms, provided they comply with the corresponding requirements of IIROC and the MFDA, respectively.

Background

On July 15, 2014, the following provisions of NI 31-103, which form part of CRM2, will come into effect:

(a) paragraph 14.2(2)(m) [relationship disclosure information];

(b) section 14.2.1 [pre-trade disclosure of charges]; and

(c) paragraphs 14.12(1)(b.1) and (c.1) [content and delivery of trade confirmation].

IIROC and the MFDA (together, these self-regulatory organizations are referred to as the SROs) have published amendments to their respective member rules that will have materially the same effect as the amendments to NI 31-103 and will also come into effect on July 15, 2014.

Relief

All CSA members have issued parallel orders that provide IIROC member firms with relief from the relevant provisions of NI 31-103, provided they comply with the corresponding requirements of IIROC.

All CSA members except Québec have issued parallel orders that provide MFDA member firms with relief from the relevant provisions of NI 31-103, provided they comply with the corresponding requirements of the MFDA.

The orders will expire on the date on which amendments to Part 9 of NI 31-103 and Appendices G and H of NI 31-103 come into force providing equivalent exemptions for IIROC and MFDA members. We will take the appropriate steps to make the necessary amendments to Part 9 of NI 31-103 in due course.

Questions

If you have questions regarding this Notice, please refer them to any of the following:

Christopher Jepson
Brian W. Murphy
Senior Legal Counsel
Deputy Director, Capital Markets
Compliance and Registrant Regulation
Nova Scotia Securities Commission
Ontario Securities Commission
902-424-4592
416-593-2379
murphybw@gov.ns.ca
cjepson@osc.gov.on.ca
 
Gérard Chagnon
Jason Alcorn
Analyste expert en réglementation
Legal Counsel, Securities
Direction des pratiques de distribution et des OAR
Financial and Consumer Services Commission (NB)
Autorité des marchés financiers
Tel: 506-643-7857
418-525-0337, ext 4815 and
jason.alcorn@fcnb.ca
1-877-525-0337
gerard.chagnon@lautorite.qc.ca
 
Kate Holzschuh
Katharine Tummon
Senior Legal Counsel
Director
Capital Markets Regulation
Office of the Superintendent
British Columbia Securities Commission
of Securities, P.E.I.
604-899-6628 and
902-368-4542
1-800-373-6393
kptummon@gov.pe.ca
kholzschuh@bcsc.bc.ca
 
Navdeep Gill
Craig Whalen
Manager, Registration
Manager of Licensing, Registration and Compliance
Alberta Securities Commission
Office of the Superintendent of Securities
403-355-9043
Government of Newfoundland and Labrador
navdeep.gill@asc.ca
709-729-5661
cwhalen@gov.nl.ca
 
Liz Kutarna
Gary MacDougall
Deputy Director, Capital Markets
Superintendent of Securities
Securities Division
Department of Justice
Financial and Consumer Affairs Authority of Saskatchewan
Government of the Northwest Territories
306-787-5871
867-873-7490
liz.kutarna@gov.sk.ca
gary_macdougall@gov.nt.ca
 
Chris Besko
Rhonda Horte
Acting General Counsel, Acting Director
Deputy Superintendent
The Manitoba Securities Commission
Office of the Yukon Superintendent
204-945-2561 and 1-800-655-5244
of Securities
(Toll Free (Manitoba only))
867-667-5466
chris.besko@gov.mb.ca
rhonda.horte@gov.yk.ca
 
Carla Buchanan
Louis Arki
Compliance Auditor
Director, Legal Registries
The Manitoba Securities Commission
Department of Justice, Government of Nunavut
204-945-8973 and 1-800-655-5244
867-975-6587
(Toll Free (Manitoba only))
larki@gov.nu.ca
carla.buchanan@gov.mb.ca