Temporary relief for IIROC member firms from ss. 14.2(2)(m), 14.2.1 and 14.12(1)(b.1) and (c.1) of NI 31-103 provided they comply with the corresponding IIROC requirements -- IIROC 2014 CRM2 amendments are material harmonized with the CSA 2014 CRM2 amendments -- Fee waiver granted to lead filer -- Effective July 15, 2014 and expires upon amendments to Part 9 of NI 31-103 and Appendix G of NI 31-103.
Applicable Legislative Provisions
National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations, ss. 9.3, 14.2(2), 14.2.1, 14.12(1), 15.1
May 29, 2014
IN THE MATTER OF NATIONAL INSTRUMENT 31-103 REGISTRATION REQUIREMENTS, EXEMPTIONS AND ONGOING REGISTRANT OBLIGATIONS AND IN THE MATTER OF DESJARDINS SECURITIES INC. (the Lead Filer) AND IIROC MEMBERS FIRMS REGISTERED AS OF JULY 15, 2014
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.
2. Under section 9.3 [exemptions from certain requirements for IIROC members] of NI 31-103, a registered firm that is a member of IIROC is exempt from certain requirements in NI 31-103 if the registered firm complies with the corresponding IIROC Provisions that are in effect. The term "IIROC Provision" is defined in section 1.1 of NI 31-103 to mean "a by-law, rule, regulation or policy of IIROC named in Appendix G, as amended from time to time".
3. On July 15, 2014, the following provisions of NI 31-103 will come into effect:
(a) paragraph 14.2(2)(m) [relationship disclosure information];
(b) section 14.2.1 [pre-trade disclosure of charges]; and
(c) paragraphs 14.12(1)(b.1) and (c.1) [content and delivery of trade confirmation] (paragraphs (a) to (c) collectively, the CSA 2014 CRM2 Amendments).
4. On July 15, 2014, certain Dealer Member Rules in relation to the implementation of Client Relationship Model -- Phase 2 (the IIROC 2014 CRM2 Amendments) will come into effect.
5. IIROC Dealer Member Rules affected by the IIROC 2014 CRM2 Amendments are not reflected in Appendix G of NI 31-103.
6. 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 July 15, 2014 from the CSA 2014 CRM2 Amendments, subject to the conditions and restrictions set out in this decision.
7. The following table sets out the relevant NI 31-103 sections of the CSA 2014 CRM2 Amendments and the corresponding IIROC Dealer Member Rules affected by the IIROC 2014 CRM2 Amendments:
NI 31-103 section
IIROC Dealer Member Rule
Dealer Member Rule 3500.5(2)(j)
Dealer Member Rule 29.9
Paragraphs 14.12(1)(b.1) and (c.1)
Dealer Member Rule 200.2(l)(v)
8. The IIROC 2014 CRM2 Amendments are materially harmonized with the CSA 2014 CRM2 Amendments.
9. Additionally, the Lead Filer has applied to the Director, under section 6.1 of Ontario Securities Commission Rule 13-502 Fees (Fee Rule), for an exemption from the requirement in section 4.1 to pay a fee for its filing of this exemption application on behalf of other IIROC members firms.
10. The following sections of NI 31-103 do not apply to the Lead Filer or any registered firm that is a member of IIROC as of July 15, 2014 if the registered firm complies with the corresponding IIROC 2014 CRM2 Amendments:
(a) paragraph 14.2(2)(m);
(b) section 14.2.1; and
(c) paragraphs 14.12(1)(b.1) and (c.1).
11. Pursuant to section 6.1 of the Fee Rule, the Lead Filer is exempt from the requirement in section 4.1 of the Fee Rule to pay an activity fee for its filing of this exemption application.
12. This decision comes into effect on July 15, 2014 and expires on the date on which amendments to Part 9 of NI 31-103 and Appendix G of NI 31-103 come into force providing an equivalent exemption for IIROC members.
May 29, 2014