CSA Staff Notice 31-335
Extension of Interim Relief for Members of the
Investment Industry Regulatory Organization of Canada from
the Requirement in section 14.2(1) of National Instrument 31-103
Registration Requirements, Exemptions and Ongoing Registrant
Obligations in Respect of the Provision of Relationship
Disclosure Information to Existing Clients
October 3, 2013
All Canadian Securities Administrators (CSA) members have issued parallel orders that provide a limited extension of previously issued interim relief from the requirement to provide relationship disclosure information (RDI) prescribed by section 14.2(1) of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) for firms that are members of the Investment Industry Regulatory Organization of Canada (IIROC). The relief has been extended to March 26, 2014 in respect of the provision of RDI to existing clients only (i.e. clients that were clients of the firm before March 26, 2013).
Section 14.2(1) of NI 31-103 sets out the principle that 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.
As announced in CSA Staff Notice 31-329 issued on September 28, 2011, all CSA members issued parallel orders that exempted firms that are members of IIROC from the application of the requirement of section 14.2(1) of NI 31-103, provided that after the IIROC RDI rules are approved, the IIROC member complies with them, subject to applicable transition periods. The orders were set to expire on December 31, 2013, by which time the IIROC RDI rules were expected to be fully implemented.
On March 26, 2012, IIROC announced in IIROC Notice 12-0107 Client Relationship Model -- Implementation the implementation of, among other things, new IIROC Dealer Member Rule 3500 -- Relationship disclosure (the IIROC RDI Rule). The IIROC RDI Rule sets 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.
The implementation schedule for the IIROC RDI Rule provided that the provision of RDI to: (i) new clients be given a one year transition period, with an effective implementation date of March 26, 2013, and (ii) existing clients be given a two year transition period, with an implementation date of March 26, 2014.
Since the IIROC RDI Rule will not come into effect until March 26, 2014 in respect of the provision of RDI to existing clients, all CSA members have issued parallel orders that exempt registered firms that are members of IIROC from the application of the requirements of section 14.2(1) of NI 31-103 in respect of the provision of RDI to their clients that were clients of the firm before March 26, 2013. The orders will come into effect on December 31, 2013 and will expire on March 26, 2014, by which time the IIROC RDI Rule will be fully implemented.
We are publishing the orders with this Notice. The orders are also available on websites of CSA members, including:
If you have questions regarding this Notice or the orders please direct them to any of the following:
Christopher Jepson Brian W. Murphy Senior Legal Counsel Deputy Director, Capital Markets Compliance and Registrant Regulation Nova Scotia Securities Commission Ontario Securities Commission 902-424-4592 416-593-2379 firstname.lastname@example.org email@example.com Gérard Chagnon Jason L. Alcorn Analyste expert en réglementation Legal Counsel, Securities Direction des pratiques de distribution et des OAR Financial and Consumer Services Commission Autorité des marchés financiers (New Brunswick) 418-525-0337, ext 4815 506-643-7857 1-877-525-0337 firstname.lastname@example.org email@example.com Kate Lioubar Katharine Tummon Senior Legal Counsel Director Capital Markets Regulation Office of the Superintendent British Columbia Securities Commission of Securities, P.E.I. 604-899-6628 and 902-368-4542 1-800-373-6393 firstname.lastname@example.org email@example.com Navdeep Gill Craig Whalen Manager, Registration Manager of Licensing, Registration and Compliance Alberta Securities Commission Office of the Superintendent of Securities 403-355-9043 Government of Newfoundland and Labrador firstname.lastname@example.org 709-729-5661 email@example.com Dean Murrison Louis Arki Director, Securities Division Director, Legal Registries Financial and Consumer Affairs Authority of Department of Justice, Government of Nunavut Saskatchewan 867-975-6587 306-787-5842 firstname.lastname@example.org email@example.com Chris Besko Rhonda Horte Deputy Director, Legal Counsel Deputy Superintendent The Manitoba Securities Commission Office of the Yukon Superintendent 204-945-2561 and 1-800-655-5244 of Securities (Toll Free (Manitoba only)) 867-667-5466 firstname.lastname@example.org email@example.com Carla Buchanan Donn MacDougall Compliance Auditor Deputy Superintendent, Legal & Enforcement The Manitoba Securities Commission Office of the Superintendent of Securities 204-945-2561 and 1-800-655-5244 Government of the Northwest Territories (Toll Free (Manitoba only)) Tel: 867-920-8984 firstname.lastname@example.org email@example.com