Securities Law & Instruments

Headnote

Subsection 78(1) of the Commodity Futures Act -- order to vary previous orders granting relief from the adviser registration requirement to include a condition to pay participation fees.

Applicable Legislative Provisions

Securities Act, R.S.O. 1990, c. S.5, as am.

Commodity Futures Act, R.S.O. 1990, c. C.20. as am., ss. 22(1)(b), 78(1), 80.

National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations, s. 8.26.

October 8, 2013

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

AND

IN THE MATTER OF
CERTAIN FINANCIAL SERVICES FIRMS
LISTED IN SCHEDULE A
(the FILERS)

ORDER
(Subsection 78(1) of the CFA)

UPON the application (the Application) to the Ontario Securities Commission (the Commission) by the Executive Director (the Director) for an order, pursuant to subsection 78(1) of the CFA, to vary previous orders (the Previous Orders) of the Commission made under section 80 of the CFA with respect to the Filers,

AND WHEREAS the Previous Orders provided that the Filers and their Representatives (as defined in the Previous Orders) are exempt from the adviser registration requirements in paragraph 22(1)(b) of the CFA, in respect of providing advice to Permitted Clients (as defined in the Previous Orders) as to trading in Foreign Contracts (as defined in the Previous Orders) provided that certain conditions are satisfied;

AND WHEREAS the conditions in the Previous Orders were intended to be analogous to the conditions of the international adviser exemption under section 8.26 of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103)(the International Adviser Exemption);

AND WHEREAS a condition required of a person or company relying on the International Adviser Exemption is to comply with the filing and fee payment requirements applicable to an unregistered exempt international firm under Ontario Securities Commission Rule 13-502 Fees;

AND UPON considering the Application and the recommendation of staff of the Commission;

AND UPON the Filers having confirmed they do not object to to a variation of the Previous Orders;

AND UPON the Commission being of the opinion that to make this Order would not be prejudicial to the public interest;

IT IS ORDERED, pursuant to subsection 78(1) of the CFA, that the Previous Orders are varied as follows:

the condition below is deleted:

By December 1 of each year, the Filer notifies the Commission if it is relying on the exemption from registration granted pursuant to this Order;

and replaced with the following condition:

By December 1, 2013, the Filer complies with the filing and fee payment requirements applicable to an unregistered exempt international firm under Ontario Securities Commission Rule 13-502 Fees.

October 8, 2013

"Wesley M. Scott"
Commissioner
Ontario Securities Commission
 
"James D. Carnwath"
Commissioner
Ontario Securities Commission

 

Schedule A

In the Matter of Quest Partners LLC, dated December 28, 2012

In the Matter of Security Investors, LLC dated December 28, 2012

In the Matter of 2100 Xenon Group LLC dated May 10, 2011