Securities Law & Instruments

Headnote

Section 5.1 - OSC Rule 31-506 - SRO Membership - Mutual Fund Dealers - variation of exemption to mutual fund dealer from the requirement to be a member of the Mutual Fund Dealers Association of Canada, dated November 30, 2002 - exemption for a limited period of time - Decision having the effect of varying exemption, to add a representation that mutual fund dealer was and is in compliance with applicable capital requirements, to replace a representation so as to clarify its meaning, and to correct typographical errors.

Statute Cited

Securities Act, R.S.O. 1990, c. S.5, as am.

Rule Cited

Rule 31-506 SRO Membership - Mutual Fund Dealers, ss. 2.1, 5.1

Decisions Cited

In the Matter of KingsGate Financial Group Limited (2002), 25 OSCB 8245.



IN THE MATTER OF THE SECURITIES ACT
R.S.O. 1990, C. S.5, AS AMENDED (the "Act")

AND

IN THE MATTER OF ONTARIO SECURITIES COMMISSION RULE 31-506
SRO MEMBERSHIP B MUTUAL FUND DEALERS (the "Rule")

AND

IN THE MATTER OF
KINGSGATE FINANCIAL GROUP LIMITED


EXEMPTION
(Section 5.1 of the Rule)


AND WHEREAS the Director issued a further exemption (the "November Exemption") dated November 30, 2002 in response to an application (the "Application") received from KingsGate Financial Group Limited. ("KingsGate") seeking a decision pursuant to section 5.1 of the Rule, that exempted KingsGate from the application of section 2.1 of the Rule on the condition that KingsGate is a member of the MFDA by April 1, 2003;

AND WHEREAS the Director has received a request from KingsGate to restate certain representations in the November Exemption to clarify the meaning of such representations;

AND WHEREAS the Director has considered the recommendation of staff of the Commission;

AND WHEREAS KingsGate has represented to the Director that:

  1. the representations set out in paragraphs 1, 2, 3, 4, 6, 7 and 8 of the November Exemption continue to be accurate except for the fact that the word "Kingsgate" should be replaced by the word "KingsGate";

  2. a new representation be added as follows:

    "KingsGate was in full compliance with applicable capital requirements under the Act at the time the Initial Exemption was granted and continues to be so compliant;";

  3. representation 5 in the November Exemption would be more properly phrased as follows:
"KingsGate has delivered to the MFDA an updated Financial Questionnaire and Report, a signed subordinated loan agreement and proof of compliance with applicable MFDA risk adjusted capital requirements;"

AND UPON the Director being satisfied that to do so would not be prejudicial to the public interest;

IT IS THE DECISION of the Director that the November Exemption be varied as follows:

  1. replace paragraph 5 of the November Exemption with the following representation:

    "KingsGate has delivered to the MFDA an updated Financial Questionnaire and Report, a signed subordinated loan agreement and proof of compliance with applicable MFDA risk adjusted capital requirements:"

  2. add as a new representation 6 to the November Exemption, with each subsequent representation in the November Exemption being renumbered accordingly:

    "KingsGate was in full compliance with applicable capital requirements under the Act at the time the Initial Exemption was granted and continues to be so compliant;"; and

  3. at each occurrence in the November Exemption, the word "Kingsgate" be replaced with "KingsGate".

January 6, 2003

"David M. Gilkes"