Compliance with Requirements

On September 28, 2009, a new Canada-wide registration regime came into force. In Ontario, these reforms are being introduced through a combination of amendments to the Securities Act (Ontario), the introduction of National Instrument 31-103 Registration Requirements and Exemptions (NI 31-103) and amendments to related rules.

In order to comply with these requirements, registered firms should determine how changes to the registration regime will apply to their operations. For example, NI 31-103 requires all registered firms to have an effective compliance system to meet their duties and obligations under securities law. NI 31-103 also includes requirements relating to complaint handling, dispute resolution and conflicts of interest, and enhanced solvency requirements.

Registered firms and individuals are still required to comply with all applicable securities laws. These include the Securities Act (Ontario) and the Regulations and related rules made under that Act, the Criminal Code and any other legislation that is relevant to the firm or individual, such as money laundering prevention, the regulation of corporations, partnerships and trusts, and privacy rights.

If you have questions about how to comply with the requirements under the new registration regime, contact us.

For more information:

• National Instrument 31-103 Registration Requirements and Exemptions

Compliance reviews

The OSC conducts compliance reviews to monitor whether firms are complying with securities law. You can find information about compliance reviews and guidance on complying with securities law in annual reports and notices published by the OSC Compliance team.

For more information:

• OSC Staff Notice 33-732 2009 Compliance Team Annual Report
• OSC Staff Notice 33-731 2008 Compliance Team Annual Report
• CSA Staff Notice 33-315 Suitability Obligation and Know Your Product
• OSC Staff Notice 33-729 Marketing Practices of Investment Counsel/Portfolio Managers

Regulation of investment dealers and mutual fund dealers

If a firm is registered as an investment dealer or mutual fund dealer, it is generally required to be a member of a self-regulatory organization (SRO). The SRO is responsible for regulating and overseeing the firm’s dealing operations and standards of business and financial conduct.

The Investment Industry Regulatory Organization of Canada (IIROC) oversees investment dealers. The Mutual Fund Dealers Association of Canada (MFDA) oversees mutual fund dealers. We are working with both SROs to harmonize the requirements related to the new registration regime and SRO rules. For more information, visit the IIROC website or the MFDA website.