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The regulator publishes amendments regarding the obligations of brokers, dealers and advisors



27 July, 2017 13:30

Photo : Freepik

The canadian securities administrators (CSA) recently published final changes to Regulation 31-103 respecting registration requirements and exemptions and ongoing obligations of registered persons and the Regulation 33-109 respecting registration information on the registration information.

The changes enhance the obligations of some companies that are listed, identify the activities that exempt market dealers may engage in, incorporate an exemption previously granted, certain obligations of the second phase of the Model of adviser-client relationship (CRM 2) and provide changes of an administrative nature.

«These changes are intended to improve the efficiency of the market while ensuring strong protection for investors,» said Louis Morisset, president of the CSA and president and ceo of theAutorité des marchés financiers. They also meet the requests of market participants who wanted clarification on some of the regulatory obligations. «

In force December 4, 2017

The changes regarding the care and custody deal with potential risks of mediation occurring when some listed companies involved in the custody of clients ‘ assets, strengthen the protection of these assets and fall within the regulations current best practices in matters of custody.

The amendments relating to the exempt market dealers are trying to clarify the activities in which they can exercise in the course of operations on securities placed by means of a prospectus. In addition, they extend the current exemption from the requirement of registration as a broker, allowing registered advisers to covered transactions in the securities of investment funds, if the adviser or a member of the same group as him manages the investment fund, and certain other conditions are met.

Subject to the approval of the competent ministers, the amendments will come into force on 4 December 2017, with the exception of the amendments relating to the custody, which shall enter into force on 4 June 2018.

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