On April 19, the Canadian Securities Administrators (CSA) published proposed National Instrument 93-102 Derivatives: Registration (Registration Instrument) and its Companion Policy for comment. NI 93-102 will establish a new regime for the registration of dealers and advisers transacting in Canadian over-the-counter (OTC) derivatives markets. The Registration Instrument complements proposed National Instrument 93-101 Derivatives: Business Conduct (Business Conduct Instrument), which was published for comment on April 4, 2017. According to the CSA, the two proposed instruments are intended to create a comprehensive investor protection framework for the regulation of people and companies who are in the business of dealing in or advising on OTC derivatives.
The CSA plans to re-publish for comment the Business Conduct Instrument soon, and has provided for an extended comment period (until September 17, 2018) so that people can consider both proposed instruments when giving feedback.
In developing the Registration Instrument, the CSA leveraged the existing registration regime reflected mainly in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103). Given AUM Law’s depth of experience in advising on NI 31-103 and related securities matters, we are ideally suited to help firms navigate the proposed derivatives registration and business conduct regime.