Securities Law & Instruments

Headnote

Revocation and restatement of an existing assignment dated June 1, 2008 of certain registration-related powers and duties to the Investment Industry Regulatory Organization of Canada (IIROC), under section 21.5 of the Securities Act (the “OSA”) and section 20 of the Commodity Features Act, effective September 28, 2009 -- Replacement of Existing Assignment by the New Assignment was made in conjunction with the coming into force of National Instrument 31-103 Registration Requirements and Exemptions, together with certain related amendments to the OSA [which will no longer require the annual renewal of registrations under the OSA], and regulations made under the OSA -- New Assignment includes an assignment to IIROC of the Director’s power to impose terms and conditions on the registration under the OSA and CFA of an individual registered representative of an IIROC-member firm during the currency of the representative’s registration.

Staff Note

The proclamations described in paragraph 11 of the Revocation and Assignment occurred by September 28, 2009.

Statutes Cited

Securities Act, R.S.O. 1990, c. S.5, as am., ss. 1(1), 21.5, 21.5(2), 21.5(3), 27, 28, 31, para. 5 of s. 31, Part XI.

Commodity Futures Act, R.S.O. 1990, c. C.20, as am., ss. 1(1), 20, 20(2), 20(3), 23, 23(2), 23(3), Part VIII.
Budget Measures Act, 2009, Schedule 26, s. 4 of Schedule 26.

Applicable Ontario Regulation
Regulation made under the Commodity Futures Act, R.R.O. 1990, Reg. 90, as am., ss. 110, 37(2), 38(2).
Regulation made under the Securities Act, R.R.O. 1990, Reg. 1015, as am., ss. 127(1), 127(2)(b), (d), (e), (g) and (h).

Rule Cited
Ontario Securities Commission Rule 31-502 Proficiency Requirements for Registrants, Parts 2 and 4.

IN THE MATTER OF THE SECURITIES ACT, R.S.O. 1990, c. S.5, AS AMENDED (the OSA)

AND

THE COMMODITY FUTURES ACT, R.S.O. 1990, C.20, AS AMENDED (the CFA)

AND

IN THE MATTER OF
THE REVOCATION OF THE ASSIGNMENT OF CERTAIN POWERS
AND DUTIES OF THE DIRECTOR TO THE INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA (IIROC) AND THE ASSIGNMENT OF CERTAIN POWERS AND DUTIES OF THE DIRECTOR TO IIROC


REVOCATION
(Subsection 21.5(3) OSA and Subsection 20(3) of the CFA)


ASSIGNMENT
(Subsection 21.5(2) of the OSA and
Subsection 20(2) CFA)



1. IIROC is a “recognized self-regulatory organization”, as defined in subsection 1(1) of the OSA and subsection 1(1) of the CFA.

2. Subsection 21.5(2) of the OSA provides that the Executive Director may, with the approval of the Ontario Securities Commission (the Commission), assign to a recognized self-regulatory organization any of the powers and duties of the Director under Part XI of the OSA or the regulations related to that Part.

3. Subsection 20(2) of the CFA provides that the Executive Director may, with the approval of the Commission, assign to a recognized self-regulatory organization any of the powers and duties of the Director under Part VIII of the CFA or the regulations related to that Part.

4. Subsection 21.5(3) of the OSA provides that, with the approval of the Commission, the Executive Director may at any time revoke, in whole or in part, an assignment of powers and duties made under section 21.5 of the OSA.

5. Subsection 20(3) of the CFA provides that, with the approval of the Commission, the Executive Director may at any time revoke, in whole or in part, an assignment of powers and duties made under section 20 of the CFA.

6. In an Assignment dated June 1, 2008 (the Existing Assignment), with the approval of the Commission, the Executive Director assigned to IIROC certain powers and duties of the Director under:

(a) Part XI of the OSA and the regulations related to that Part (including – subsection 127(1) and clauses 127(2)(b), (d), (e), (g) and (h) of the OSA Regulation (defined below) and Parts 2 and 4 of OSC Rule 31-502 Proficiency Requirements for Registrants (OSC Rule 31-502), pursuant to subsection 21.5(2) of the OSA; and

(b) Part VIII of the CFA and the regulations related to that Part, pursuant to subsection 20(2) of the CFA.
7. A copy of the Existing Assignment is attached hereto as Schedule A.

8. Schedule 26 (the OSA Schedule) of the Budget Measures Act, 2009 provides for amendments to the OSA, including section 4 of the Schedule (the OSA Part XI Amendments) which provides for the repeal of the current Part XI and substitution of a new Part XI .

9. On June 5, 2009, the Budget Measures Act, 2009 received Royal Assent.

10. Subsection 21(2) of the OSA Schedule provides that the OSA Part XI Amendments will come into force on a day to be named by proclamation of the Lieutenant Governor.

11. On July 14, 2009, the Commission revoked OSC Rule 31-502. The making and revoking of this rule was subject to the approval of the Minister, which occurred on August 28, 2009. The making and revoking of this rule is effective on September 28, 2009, assuming that the proclamation described in paragraph 10 and the proclamation by the Lieutenant Governor of other specified sections of the OSA Schedule occurs by September 28, 2009.

12. On July 20, 2009, the Commission revoked section 127 of R.R.O. 1990, Regulation 1015, as amended, made under the OSA (the “OSA Regulation”). The revocation of this section is also effective on September 28, 2009, assuming the proclamations described in paragraph 11 occur by September 28, 2009.

13. The Executive Director and the Commission consider it now desirable for the Existing Assignment to be replaced by this new Assignment.

NOW THEREFORE:

Subject to the proclamations described in paragraph 11 occurring by September 28, 2009,

1. Under subsection 21.5(3) of the OSA and subsection 20(3) of the CFA, the Executive Director revokes the Existing Assignment, effective on September 28, 2009, without prejudice to the effectiveness of any exercise, prior to such revocation, of the powers and duties that were assigned by the Existing Assignment.

2. Under subsection 21.5(2) of the OSA and subsection 20(2) of the CFA, effective on September 28, 2009, the Executive Director assigns to IIROC:

(A) with respect to applications for registration, applications for reinstatement of registration and applications for amendment of registration from individuals who are approved persons of members of IIROC and individuals who are applying to become approved persons of members of IIROC, the powers and duties vested in or imposed on the Director by:

(a) sections 27 and 31 of the OSA,

(b) section 23 of the CFA, and

(c) subsections 37(7) and 38(2) of R.R.O. 1990, Regulation 90, made under the CFA; and
(B) with respect to the registration of individuals who are approved persons of IIROC, the powers and duties vested in or imposed upon the Director by:

(a) section 28 of the OSA, but only in respect of the power to impose terms and conditions at any time during the period of registration, and paragraph 5 of section 31 of the OSA, and

(b) subsections 23(2) of the CFA, but only in respect of the power to impose terms and conditions at any time during the period of registration, and subsection 23(3) of the CFA.
DATED at Toronto, this 22nd day of September, 2009.

“Peggy Dowdall-Logie”
Executive Director

APPROVED at Toronto, this 22nd day of September, 2009.

  "James E.A. Turner"  
Commissioner
  "Mary G. Condon"  
Commissioner




Schedule A

IN THE MATTER OF
THE SECURITIES ACT,
R.S.O. 1990, c. S.5, AS AMENDED
(the OSA)
AND
THE COMMODITY FUTURES ACT,
R.S.O. 1990, c. 20, AS AMENDED
(the CFA)
IN THE MATTER OF
THE REVOCATION OF THE
ASSIGNMENT OF CERTAIN POWERS AND DUTIES OF
THE DIRECTOR TO THE
INVESTMENT DEALERS ASSOCIATION OF CANADA
AND
THE ASSIGNMENT OF
CERTAIN POWERS AND DUTIES OF THE DIRECTOR
TO THE INVESTMENT INDUSTRY REGULATORY
ORGANIZATION OF CANADA (IIROC)


REVOCATION
Section 21.5(3) OSA


ASSIGNMENT
Section 21.5(2) OSA
Section 20(2) CFA


WHEREAS:

  1. Section 21.5(2) of the OSA provides that the Executive Director may, with the approval of the Ontario Securities Commission (the Commission), assign to a recognized self-regulatory organization any of the powers and duties of the Director under Part XI of the OSA or the regulations related to that Part;
  2. Section 20(2) of the CFA provides that the Executive Director may, with the approval of the Commission, assign to a recognized self-regulatory organization any of the powers and duties of the Director under Part VIII of the CFA or the regulations related to that Part;
  3. Section 21.5(3) of the OSA provides that, with the approval of the Commission, the Executive Director may at any time revoke, in whole or in part, an assignment of powers and duties made under section 21.5 of the OSA;
  4. On July 2, 1996, the Executive Director assigned to the Investment Dealers Association of Canada (IDA), pursuant to section 21.5(2) of the OSA, certain powers and duties of the Director under Part XI of the OSA or the regulations related to that Part (the Existing Assignment);
  5. A copy of the Existing Assignment is attached hereto as Schedule A;
  6. The IDA has merged with Market Regulation Services Inc. to form the IIROC;
  7. The IIROC is a recognized self-regulatory organization under section 21.1(1) of the OSA and section 16(1) of the CFA;
  8. The Executive Director proposes to revoke the Existing Assignment and to assign to the IIROC certain powers and duties of the Director under Part XI of the OSA and the regulations related to that Part, and under Part VIII of the CFA; and
  9. The Commission approves the revocation of the Existing Assignment and the assignment of certain powers and duties by the Executive Director to the IIROC.

NOW THEREFORE:

Under section 21.5(3) of the OSA, the Executive Director revokes the Existing Assignment, without prejudice to the effectiveness of any exercise prior to the date of this revocation of the powers and duties that were assigned by the Existing Assignment.

Under section 21.5(2) of the OSA and section 20(2) of the CFA, the Executive Director assigns to the IIROC:

(1) with respect to applications for registration, applications for reinstatement of registration and applications for amendment of registration from individuals who are approved persons of members of the IIROC and individuals who are applying to become approved persons of members of the IIROC, the powers and duties vested in or imposed on the Director by:

(a) Section 26 of the OSA, with the exception of renewal of registration,

(b) Section 23 of the CFA, with the exception of renewal of registration,

(c) Sections 127(1) and 127(2)(b), (d), (e), (g), and (h) of R.R.O. 1990, Regulation 1015 made under the OSA, and

(d) Sections 37(7) and 38(2) of R.R.O. 1990, Regulation 90 made under the CFA, and

(2) the powers and duties vested in or imposed on the Director by Parts 2 and 4 of OSC Rule 31-502 Proficiency Requirements for Registrants.

DATED this 1st day of June, 2008.

"Peggy Dowdall-Logie"

Executive Director

APPROVED this 1st day of June, 2008.

"Kevin Kelly"
Commissioner

"James E. A. Turner"
Commissioner