The CSA explain in the recent publication that industry participants can expect to see other proposals for amendments to National Instrument 31-103 and related instruments as they continue their work on various outstanding projects. We expect that the CSA would welcome comments from industry participants on these issues .
- Registration for investment fund managers in provinces and territories other than the jurisdiction of their head office – this could affect non-Canadian investment fund managers that are today not required to be registered in this capacity in Canada.
- Exemption for sub-advisers – currently, Ontario and Québec are the only provinces that provide registration exemptions for sub-advisers; in the other Canadian jurisdictions such relief must be applied for.
- Exemption for capital accumulation plans – the CSA proposed an exemption regime for capital accumulation plans in 2005 but that proposal was never finalized.
- Cost disclosure and performance reporting to clients – the CSA continue to work with the SROs to develop harmonized requirements for enhanced cost disclosure and performance reporting requirements.
- Client statements, including whether they should include securities held or controlled by a firm or whether they need to also include client name securities. In addition to seeking general comments on this issue, the CSA have asked for feedback on specific questions about the issue.
- Requirements for registrants to report on client complaints to the CSA.
Mortgage investment corporations and mortgage syndicators: The CSA are also considering how the registration regime should fit with the business of mortgage investment corporations and mortgage syndicators. These entities are expected to benefit from an additional transition period – to the end of 2010 – before the adviser and investment fund manager registration requirements will apply to them. Importantly, however, the CSA have indicated clearly that firms in the business of mortgage investment corporations and mortgage syndicators are in “the business of trading” in the exempt market and must comply with the requirement to apply for registration as an exempt market dealer by the September 28 deadline, unless there is an exemption available. The BCSC has said publicly that it will be issuing temporary relief until December 31, 2010 from dealer registration for real estate entities that are not registered in another category or jurisdiction.