As we described in our post earlier today, the OSC's Compliance and Regulation Branch recently released its 2010 annual report. Beyond what we've already discussed, the report also provides a hint of regulatory changes that can be expected in the near future:
- The report discusses the recent work by regulators on the Client Relationship Model and states that future amendments to National Instrument 31-103 Registration Requirements and Exemptions will require registered firms to provide additional disclosure to clients of all costs associated with the products and services they receive, as well as meaningful reporting to clients on how their investments perform.
- Reportedly, the CSA are also considering adding a sub-adviser registration exemption to NI 31-103 to apply across Canada, similar to Ontario's exemption found in s. 7.3 of OSC Rule 35-502 Non Resident Advisers. Currently, many other Canadian jurisdictions grant discretionary relief with similar terms.