Earlier this week, all CSA members except the OSC issued blanket orders to provide interim relief from the new restrictions on registration exemptions for international dealers and international advisers found in the July 2011 amendments to NI 31-103. As such, the investment dealer and international adviser exemptions are once again generally premised on whether a client is a "permitted client" rather than a "Canadian permitted client". As Ontario securities law does not permit the OSC to issue an order of this nature, OSC Staff have confirmed that they will not enforce the "Canadian permitted client" restrictions provided that, when relying on the exemption, an international dealer or international adviser
- satisfies the requirements of the exemption of the definition of "Canadian permitted client" in these sections if the sections instead referred to "permitted client" but excluded in the case of the international adviser exemption, a dealer or adviser registered under the securities legislation of a jurisdiction of Canada;
- complies with the other provisions of Ontario securities law applicable to the exemptions (including requirements relating to payment of fees); and,
- identifies on Form 31-103F2 Submission to Jurisdiction and Appointment of Agent for Service that, in addition to the corresponding exemption, the person or company is also relying on CSA Staff Notice 31-329.The OSC expects to withdraw this position on the coming into effect of any future amendments to NI 31-103 dealing with the definition of "Canadian permitted client".
For more information, see CSA Staff Notice 31-329.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.