Desjardins Securities Inc. and IIROC member firms registered as of the date of this decision

Decision

Headnote

The applicant and other IIROC members are temporarily exempted from the requirement in section 14.2(1) of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations to provide relationship disclosure information.

IN THE MATTER OF

NATIONAL INSTRUMENT 31-103 REGISTRATION

REQUIREMENTS, EXEMPTIONS AND ONGOING

REGISTRANT OBLIGATIONS

AND

DESJARDINS SECURITIES INC.

(the Lead Filer) AND

IIROC MEMBER FIRMS REGISTERED AS OF

THE DATE OF THIS DECISION

DECISION

Interpretation

1. Unless otherwise defined in this decision or the context otherwise requires, terms used in this decision that are defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) or National Instrument 14-101 Definitions have the same meaning.

Background

2. Under section 14.2(1) [relationship disclosure information] of NI 31-103, a registered firm must deliver to a client all information that a reasonable investor would consider important about the client's relationship with the registrant.

3. The Investment Industry Regulatory Organization of Canada (IIROC) is currently finalizing its proposal on relationship disclosure information (the IIROC RDI proposal), most recently published on January 7, 2011 in IIROC Notice 11-0005 Proposals to implement the core principles of the Client Relationship Model -- Proposed amendments -- New Rule XX00 -- Relationship disclosure.

4. The purpose of the IIROC RDI proposal is to set out detailed requirements to assist registered firms who are IIROC members to comply with the general principle in section 14.2(1) of NI 31-103.

5. Under section 16.14 of NI 31-103, temporary relief from the application of section 14.2(1) of NI 31-103 was available until September 28, 2010 to persons or companies that were registered on the date when NI 31-103 came into effect.

6. Under a decision granted to the Lead Filer on September 9, 2010, further temporary relief from the application of section 14.2(1) of NI 31-103 was made available until September 28, 2011 to IIROC members that were registered on the date of the decision.

7. The temporary relief was provided in anticipation of the finalization of the IIROC RDI proposal. It is now anticipated that the IIROC RDI proposal will be finalized and new IIROC member rules reflecting the IIROC RDI proposal (the IIROC RDI rules) will be approved before the end of 2011 with provisions for their implementation in phases over a two-year transition period.

Application

8. The Lead Filer has applied to the Director, under section 15.1 of NI 31-103, for exemptions for itself and each registered firm that is a member of IIROC as of the date of this decision from paragraph 14.2(1) of NI 31-103, subject to the conditions and restrictions set out in this decision.

9. The Lead Filer represents that if it is required to comply with section 14.2(1) of NI 31-103 on September 28, 2011, it will be required to prepare detailed relationship disclosure information and may incur significant costs changing its relationship disclosure communications when the IIROC RDI rules are implemented.

10. The Lead Filer further represents that since the IIROC RDI rules are likely to come into force before the end of 2011, and be implemented in phases during a two-year transition period, the cost that it will incur by having to comply with section 14.2(1) of NI 31-103 on September 28, 2011 is not justified.

Decision

11. Section 14.2(1) of NI 31-103 does not apply to the Lead Filer or any registered firm that is a member of IIROC as of the date of this decision, provided in each case that, after the IIROC RDI rules are approved, it complies with the IIROC RDI rules subject to applicable transition provisions set out in the IIROC RDI rules.

12. This decision comes into effect on September 28, 2011 and expires on December 31, 2013.

September 20, 2011

"Erez Blumberger"
Deputy Director
Compliance and Registrant Regulation