Commission Approval of Rule: OSC Rule - 31-504 - Dealer and Advisor Applications for Registration

 

NOTICE OF RULE AND RESCISSION OF POLICY UNDER
THE SECURITIES ACT
RULE 31-504
APPLICATIONS FOR REGISTRATION

Notice of Rule and Rescission of Policy

The Commission has, under section 143 of the Securities Act (the "Act"), made Rule 31-504 Applications for Registration (the "Rule").

The Rule and the material required by the Act to be delivered to the Minister of Finance were delivered on June 25, 1997. If the Minister does not approve theRule, reject the Rule or return it to the Commission for further consideration, the Rule will come into force on September 8, 1997. If the Minister approves theRule, the Rule will come into force 15 days after it is approved.

The Commission has also rescinded the Policy Notice entitled "OSC Collection of Personal Information - Freedom of Information and Protection of Privacy Act,1987" (1989), 12 OSCB 3038 (the "FOI Policy Notice") on the date on which the Rule comes into force.

Substance and Purpose of Rule

Subject to certain exemptions, the Act imposes a registration requirement on persons or companies trading in securities, acting as an underwriter or acting as anadviser. Applicants seeking registration as a dealer, underwriter or adviser are required to complete Form 3 ("Form 3") of the Regulation under the Act (the"Regulation") and individuals seeking registration or approval in connection with a firm registration are required to complete Form 4 ("Form 4") of theRegulation.

Form 4 requires an applicant to indicate which courses or examinations the applicant has successfully completed. Staff's administrative practice is to require thatan applicant submit proof of completion of any courses or examinations identified by the applicant as having been successfully completed. The Rule codifies thisrequirement.

In 1987, the Ontario Government introduced the Freedom of Information and Protection of Privacy Act (the "FOI Act"). The FOI Act requires that certainpersons who collect personal information about individuals obtain a consent from the individuals from whom personal information is obtained and restrict the useof the information to the uses specified in obtaining it.

In 1989, the Commission published the FOI Policy Notice. The FOI Policy Notice required that notice and consent forms mandated by the FOI Act be deliveredto the Commission in a variety of circumstances, including delivery of a Form 3 or Form 4. The Rule implements this requirement in connection with thedelivery of a Form 3 or Form 4 and prescribes the form of consent.

Summary of Rule

Part 1 of the Rule requires an individual applicant to provide proof of completion of courses or examinations identified by the individual as having beencompleted on an application for registration or an amendment to registration relating to proficiency.

Part 2 of the Rule requires an individual or firm applicant to provide a notification and consent form for collection of personal information. The prescribed formsare attached to the Rule as Appendices A and B.

Summary of Written Comments Received by the Commission

The Commission did not receive any comments on the Rule or its intention to rescind the FOI Policy Notice.

Text of Rule

The text of the Rule follows.

Text of Rescission of Policy

The Rule will replace the FOI Policy Notice. The Commission is rescinding the FOI Policy Notice effective on the date on which the Rule comes into force. Thetext of the rescission is as follows:

"The policy of the Ontario Securities Commission entitled "OSC Collection of Personal Information - Freedom of Information and Protection of Privacy Act,1987" is rescinded."

DATED: June 27, 1997

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ONTARIO SECURITIES COMMISSION RULE 31-504

APPLICATIONS FOR REGISTRATION

PART 1 PROFICIENCY

1.1 Proof of Proficiency With Registration - An applicant for registration or reinstatement of registration who is an individual shall deliver to the Commission,with the application, proof of successful completion of the courses and examinations identified in the application as having been completed.

1.2 Proof of Proficiency With Amendment to Registration - A registrant who is an individual and delivers an amendment to the registrant's registration relatingto the registrant's proficiency shall deliver to the Commission, with the amendment, proof of successful completion of the courses and examinations identified inthe amendment as having been completed.

PART 2 COLLECTION OF PERSONAL INFORMATION

2.1 Dealer, Adviser and Underwriter Application for Registration - A person or company delivering a Form 3 to the Commission under the Regulation shalldeliver with the Form 3 an executed confirmation of notification and consent in the form of Appendix A.

2.2 Salesperson, Partner, Officer and Director Application - An individual delivering a Form 4 to the Commission under the Regulation shall deliver, with theForm 4 an executed confirmation of notification and consent in the form of Appendix B.

PART 3 EXEMPTION

3.1 Exemption - The Director may grant an exemption to this Rule, in whole or in part, subject to such conditions or restrictions as may be imposed in theexemption.

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ONTARIO SECURITIES COMMISSION RULE 31-504

APPLICATIONS FOR REGISTRATION

APPENDIX A

COLLECTION OF PERSONAL INFORMATION

Under the Freedom of Information and

Protection of Privacy Act

1. Notification

The legal authority for the collection is section 25 of the Securities Act, R.S.O. 1990, c.S-5, as amended, and clause 129(a) of Regulation 1015 R.R.O. 1990 (the"Regulation").

The principal purpose for which the personal information is intended to be used is to support the applicant's application for registration or reinstatement ofregistration as a dealer, adviser or underwriter.

I, the applicant, or the authorized signing officer or partner of the applicant, confirm that the individuals listed in the attached Form 3 under the Regulation("Form 3"), if any, have been notified of the filing with the Ontario Securities Commission (the "OSC") of the personal information disclosed about them in theattached Form 3. The individuals have also been notified of the legal authority for the collection, the principal purpose for which the personal information isintended to be used and the title, business address and business telephone number of the public official who can answer questions concerning the collection.

2. Consent

I consent, and am authorized to consent on behalf of each individual listed in the attached Form 3, if any, and do so consent, to the collection by the OSC of thepersonal information contained in the attached Form 3, police records, records of other government or non-government regulatory authorities or self-regulatoryorganizations, credit records and employment records about the named individuals as may be necessary for the OSC to complete its review of the applicant'sapplication or continued fitness for registration in accordance with the legal authority cited above for the duration of the period which the applicant or the listedindividuals remain registered or approved by the OSC. I also consent, and am authorized to consent on behalf of each individual named in the attached Form 3,if any, and do so consent to the disclosure by the OSC of any personal information to a self-regulatory organization or stock exchange in connection with aninvestigation or exercise of regulatory authority. The sources the OSC may contact include government and private bodies or agencies, individuals, corporationsand other organizations.

3. The Public Official who can answer questions about the collection is:

General Manager, Registration

Ontario Securities Commission

18th Floor, 20 Queen Street West

Toronto, Ontario

M5H 3S8

(416) 593-8124

Authorized Signature _______________________ __________________________

Indicate Capacity Date

_______________________________________

(Please print here name of individual whose

signature appears above.)

ONTARIO SECURITIES COMMISSION RULE 31-504

APPLICATIONS FOR REGISTRATION

APPENDIX B

COLLECTION OF PERSONAL INFORMATION

Under the Freedom of Information and

Protection of Privacy Act

1. Notification

The legal authority for the collection is section 25 of the Securities Act, R.S.O. 1990, c.S-5, as amended, and clause 129(b) of the Regulation 1015 R.R.O. 1990(the "Regulation").

The principal purpose for which the personal information is intended to be used is to support the applicant's application to act as a salesperson, partner, officer ordirector of a registered dealer, adviser or underwriter.

I, the applicant, confirm that each individual listed in this form, if any, has been notified of my filing with the Ontario Securities Commission (the "OSC") of thepersonal information provided about him or her in the attached Form 4 under the Regulation ("Form 4"). The individuals have also been notified of the legalauthority for the collection, the principal purpose for which the personal information is intended to be used and the title, business address and business telephonenumber of the public official who can answer questions concerning the collection.

2. Consent

I consent to the collection by the OSC of any personal information about me in the attached Form 4, any police records, records of other government ornon-government regulatory authorities or self-regulatory organizations, credit records and employment records as may be necessary for the OSC to complete itsreview of my application or continued fitness for registration or another applicant's application or continued fitness for registration for the duration of the periodwhich I remain registered or approved by the OSC. I am authorized to consent on behalf of each individual listed in the attached Form 4, if any, and do soconsent, to the collection by the OSC of the personal information contained in the attached Form 4 about him or her and any additional personal informationabout the listed individuals in any police records, records of other government or non-government regulatory authorities or self-regulatory organizations, creditrecords and employment records as may be necessary for the OSC to complete its review of my application or continued fitness for registration or anotherapplicant's application or continued fitness for registration in accordance with the legal authority cited above for the duration of the period which I remainregistered or approved by the OSC. I also consent, and am authorized to consent on behalf of each individual listed in the attached Form 4, if any, and do soconsent, to the disclosure by the OSC of any personal information to a self-regulatory organization or stock exchange in connection with the performance of aninvestigation or other exercise of regulatory authority. The sources the OSC may contact include government and private bodies or agencies, individuals,corporations and other organizations.

3. The Public Official who can answer questions about the collection is:

General Manager, Registration

Ontario Securities Commission

18th Floor, 20 Queen Street West

Toronto, Ontario

M5H 3S8

(416) 593-8124

Authorized Signature _______________________ __________________________

Indicate Capacity Date

_______________________________________

(Please print here name of individual whose

signature appears above.)