The Canadian Securities Administrators has issued final amendments to the registration rules for firms.
The amendments are to National Instrument 31-103: Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103), and National Instrument 33-109: Registration Information.
The changes enhance custody requirements for some registered firms, clarify activities that may be conducted by exempt market dealers, incorporate previously granted relief from some requirements of CRM2, and provide for other housekeeping changes, CSA says.
The custody amendments address potential intermediary risks when some registered firms are involved in the custody of client assets, enhance the protection of client assets and codify existing custodial best practices.
CSA says the exempt market dealer amendments clarify activities permitted related to trades in prospectus-qualified securities. The changes also expand an existing exemption from the dealer registration requirement, allowing registered advisors to trade in the securities of investment funds provided that the advisor or an affiliate manages the investment fund, among other conditions.
The CRM2 amendments make permanent the relief granted by CSA in May 2015. They also address issues that have arisen since CRM2’s implementation, the group of provincial securities regulators says.
The custody amendments come into force on June 4, 2018; the other amendments are effective December 4, 2017. Both sets of amendments are subject to provincial ministerial approvals.
“These amendments aim to enhance market efficiencies while maintaining strong investor protections,” Louis Morisset, CSA chair, said in a statement Thursday. “They also address market participants’ desire for clarity on certain regulatory requirements.”
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