Securities Law & Instruments

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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

Introduction

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).

Relief

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:

www.lautorite.qc.ca
www.albertasecurities.com
www.bcsc.bc.ca
www.msc.gov.mb.ca
www.gov.ns.ca/nssc
www.nbsc-cvmnb.ca
www.osc.gov.on.ca
www.sfsc.gov.sk.ca

Questions

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
murphybw@gov.ns.ca
cjepson@osc.gov.on.ca
 
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
jason.alcorn@fcnb.ca
gerard.chagnon@lautorite.qc.ca
 
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
kptummon@gov.pe.ca
klioubar@bcsc.bc.ca
 
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
navdeep.gill@asc.ca
709-729-5661
cwhalen@gov.nl.ca
 
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
larki@gov.nu.ca
dean.murrison@gov.sk.ca
 
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
chris.besko@gov.mb.ca
rhonda.horte@gov.yk.ca
 
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
carla.buchanan@gov.mb.ca
donald.macdougall@gov.nt.ca