Companion Policy: NI - 33-104 - Selling Arrangements

 

COMPANION POLICY 33-104CP⁽¹⁾

SELLING ARRANGEMENTS

PART 1 SELLING ARRANGEMENTS

1.1 Selling Arrangements

(1) Under National Instrument 33-104 Selling Arrangements, the registrant submitting the selling arrangement notice must disclose all relevant facts to permit thesecurities regulatory authority to consider the nature of the inducement and conditions proposed to be implemented and to determine whether the sellingarrangement affords an adequate level of investor protection or otherwise raises public interest concerns. In reviewing a selling arrangement notice, the securitiesregulatory authority will, among other things, consider if the selling arrangement

(a) is likely to give rise to conflicts of interest; or

(b) is likely to hinder a registrant in complying with the conditions of registration applicable to it.

(2) In British Columbia and Quebec, the regulator will normally object to a selling arrangement under which a registrant imposes an obligation on clients topurchase a product from the Canadian financial institution.

1.2 Competition Act - Registrants engaged in selling arrangements are reminded that under the Competition Act (Canada) certain tied-selling arrangements maybe prohibited by the Competition Tribunal.

1. This proposed National Policy is derived from The Principles of Regulation Re: Activities of Registrants Related to Financial Institutions.