Scotia Securities Inc. and other Mutual Fund Dealers registered as of November 5, 2010

Headnote

Revocation of prior interim decision of Director dated November 2, 2010, In the Matter of National Instrument 31-103 Registration Requirements and Exemptions and In the Matter of Scotia Securities Inc. and other Mutual Fund Dealers registered as of the date of this decision . Circumstances provided for in the interim decision have now been addressed through an amendment to paragraph 13.2(3)(b)(i) in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations . Before its amendment, paragraph 13.2(3)(b)(i) provided that, for the purposes of establishing the identity of a client that is a corporation, a registrant must establish the identity of any individual who is a beneficial owner of, or exercises direct or indirect control or direction over, more than 10% of the voting rights attached to the outstanding voting securities of the corporation -- Under the interim decision, the specified mutual fund dealer registrants were exempted from paragraph 13.2(3)(b)(i) if the registrant was not registered in any other category of registration (other than mutual fund dealer or both mutual fund dealer and investment fund manager) and the registrant complied with the provisions of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) requiring the identification of any person who owned or controlled 25% or more of the shares of a corporation that was a client . Paragraph 13.2(3)(b)(i) of NI 31-103 now provides that, for the purposes of establishing the identity of a client that is a corporation, the registrant must establish the identity of any individual who is a beneficial owner of, or exercises direct or indirect control or direction over, more than 25% of the voting rights attached to the outstanding voting securities of the corporation.

Applicable Legislative Provisions

National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations, ss. 13.2(3), 13.2(3)(b)(i), and 15.1.

Other Statutes Cited

Proceeds of Crime (Money Laundering) and Terrorist Financing Act, S.C. 2000, c. 17.

Decision Cited

In the Matter of National Instrument 31-103 Registration Requirements and Exemptions and In the Matter of Scotia Securities Inc. and other Mutual Fund Dealers registered as of the date of this decision, (2010) 33 OSCB 10162.

September 13, 2011

IN THE MATTER OF

NATIONAL INSTRUMENT 31-103 REGISTRATION REQUIREMENTS,

EXEMPTIONS AND ONGOING REGISTRANT OBLIGATIONS

("NI 31-103")

AND

SCOTIA SECURITIES INC. (the "Lead Filer")

AND OTHER MUTUAL FUND DEALERS REGISTERED AS OF NOVEMBER 5, 2010

DECISION

Interpretation

Unless otherwise defined in this decision or the context otherwise requires, terms used in this decision that are defined in NI 31-103 or National Instrument 14-101 Definitions have the same meaning.

Background

1. The Lead Filer applied to the Director, under section 15.1 of NI 31-103, for exemptions for the Lead Filer and other mutual fund dealers registered as of November 5, 2010 (together with the Lead Filer, the Filers or, individually, a Filer) from the know your client requirements in subparagraph 13.2(3)(b)(i) of NI 31-103, subject to certain conditions and restrictions.

2. On November 2, 2010, the Director issued a decision (the Interim Decision) under section 15.1 of NI 31-103, In the Matter of National Instrument 31-103 Registration Requirements and Exemptions and In the Matter of Scotia Securities Inc. and other Mutual Fund Dealers registered as of the date of this decision, (2010) 33 OSCB 10162.

3. Under the Interim Decision, subparagraph 13.2(3)(b)(i) of NI 31-103 did not apply to a registrant that was a mutual fund dealer in respect of a client that was a corporation, provided that the mutual fund dealer:

a. was not registered in any other category of registration other than as a mutual fund dealer or as both a mutual fund dealer and an investment fund manager; and

b. complied with the provisions of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) requiring the identification of any person who owned or controlled 25% or more of the shares of a corporation that was a client.

4. The Interim Decision was issued by the Director on the understanding that it would be reconsidered in the course of the NI 31-103 amendments process.

5. Amendments to NI 31-103 were published on April 15, 2011 and came into force on July 11, 2011. As a result of these amendments, the circumstances previously provided for in the Interim Decision are now addressed in subsection 13.2(3) of NI 31-103.

Decision

The Director is satisfied that it is in the public interest for him to make this decision.

The decision of the Director is that, effective September 16, 2011, the Interim Decision is revoked.