NOTICE OF EFFECTIVE DATE - TECHNICAL AMENDMENTS TO CDS PROCEDURES
TAX CHANGES ON CDS FORMS
A. DESCRIPTION OF THE PROPOSED CDS PROCEDURE AMENDMENTS
On August 26, 2011, the Government of British Columbia (BC) announced that it would be reinstating its provincial sales tax (PST) following the referendum on the elimination of the Harmonized Sales Tax (HST) in the province. Effective April 1, 2013, the Goods and Service Tax (GST) will be reinstated in BC at a rate of 5.0%.
On their budget tabled on April 18, 2012, the Government of Prince Edward Island (PEI) announced their intention to enter into negotiations with the federal government to harmonize its provincial sales tax with the GST on April 1, 2013. Effective April 1, 2013, a 14% HST will apply on taxable services in PEI.
The following amendments are housekeeping changes made in the ordinary course of review of CDS's Participant Procedures, and are required to amend the applicable taxes on the following forms, effective April 1, 2013:
• CDSX166 form -- Notice of Record & Meeting Dates
• CDSX796 form -- Application for Participation Form, Appendix F (Calculation of Entrance Fees)
CDS procedure amendments are reviewed and approved by CDS's strategic development review committee (SDRC). The SDRC determines or reviews, prioritizes and oversees CDS-related systems development and other changes proposed by participants and CDS. The SDRC's membership includes representatives from the CDS participant community and it meets on a monthly basis.
These amendments were reviewed and approved by the SDRC on February 28, 2013.
The proposed procedure amendments are available for review and download on the User Documentation page on the CDS website at www.cds.ca/cdsclearinghome.nsf/Pages/-EN-UserDocumentation?Open.
B. REASONS FOR TECHNICAL CLASSIFICATION
The amendments proposed in this Notice are considered technical in nature, and are required to ensure consistency or compliance with an existing rule, securities legislation or other regulatory requirement, as described in Section 3 (a) (iii) of the Rule Protocols regarding review and approval of CDS Clearing and Depository Services Inc. Rules issued by the Ontario Securities Commission, and in Section 3 (a) (iii) of the Rule Protocols issued by the Autorité des marchés financiers.
C. EFFECTIVE DATE OF THE CDS PROCEDURE AMENDMENTS
CDS is recognized as a clearing agency by the Ontario Securities Commission pursuant to section 21.2 of the Ontario Securities Act, and by the British Columbia Securities Commission pursuant to section 24(d) of the British Columbia Securities Act, and as a clearing house by the Autorité des marchés financiers pursuant to Section 169 of the Quebec Securities Act. In addition CDS is deemed to be the clearing house for CDSX®, a clearing and settlement system designated by the Bank of Canada pursuant to section 4 of the Payment Clearing and Settlement Act. The Ontario Securities Commission, the British Columbia Securities Commission, the Autorité des marchés financiers and the Bank of Canada will hereafter be collectively referred to as the "Recognizing Regulators".
CDS has determined that these amendments will become effective on April 1, 2013.
Questions regarding this notice may be directed to:
Laura EllickManager, Business SystemsCDS Clearing and Depository Services Inc.85 Richmond Street WestToronto, Ontario M5H 2C9Telephone: (416) 365-3872Email: email@example.com