• CSA Proposes Changes to Registrant Regulation
  • February 3, 2014 | Authors: Alexis Bowie; Anita Kim; Jamie Litchen; Joel McElravy
  • Law Firm: Cassels Brock & Blackwell LLP - Toronto Office
  • The CSA is seeking public comment on various proposed changes to the registrant regulatory framework. The comment period ends on March 5, 2014.

    The CSA’s proposed changes are centred around NI 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations, but also affect NI 33-109, NI 52-107 and their respective companion policies and forms, as well as OSC Rules 33-506 and 33-502.

    The proposed changes to NI 31-103 and its companion policy include:

    • restricting the activities that exempt market dealers are permitted to conduct, including prohibiting exempt market dealers from conducting brokerage activities (an area where the CSA had previously expressed concern);

    • clarifying that the exemption for trades made through registered dealers is not available if the person relying on the exemption contacts/solicits a purchaser in relation to the trade; and

    • providing an exemption from the dealer registration requirement for trades in short-term debt.

    There are many more changes being proposed. A comprehensive summary is available in the CSA Notice published in relation to these changes. The complete set of proposed changes is available as a supplement to the OSC Bulletin.