On November 15, 2012, the Canadian Securities Administrators
(CSA), published for comment proposed amendments to National
Instrument 31-103 Registrant Requirements, Exemptions and
Ongoing Registrant Obligations (NI 31-103) and Companion
Policy 31-103CP Registrant Requirements, Exemptions and Ongoing
Registrant Obligations (NI 31-103CP). The proposed
amendments would require all registered dealers and registered
advisers outside of Québec to utilize the Ombudsman for
Banking Services and Investments (OBSI) as the common dispute
resolution service for the discharge of their obligations under
section 13.16 Dispute Resolution Services of NI 31-103 in
response to a client complaint. A complaint for these purposes
would be defined as one that is raised within six years of the date
when the client knew or reasonably ought to have known of the
trading or advising activity that it relates to, and involves a
claim of no more than $350,000.
The firms that would be most directly affected by the proposed
amendments are dealers and advisers registered outside of
Québec that are not members of either the Investment
Industry Regulatory Organization of Canada (IIROC) or the Mutual
Fund Dealers Association of Canada (the MFDA). IIROC and the
MFDA already mandate the use of OBSI as the dispute resolution
services provider for their member firms. Section 13.16 of NI
31-103 does not apply to Investment Fund Managers. Registered
firms in Québec that comply with sections 168.1.1 to 168.1.3
of the Securities Act (Québec) are deemed to comply
with section 13.16 since these provisions set out a complaint
handling regime whereby the Autorité des marchés
financiers (the AMF) may act as a mediator.
The proposed amendments would not restrict a client's
ability to take a complaint to a dispute resolution service of
their own choosing at their own expense, or to bring an action in
Issues for Comment
Would the time limit on complaints be more appropriate if it
was counted from the time when the trading or advising activity
that it relates to occurred, rather than from the time when the
client knew or reasonably ought to have known of the trading or
OBSI's current terms of reference require a complaint to be
made to the ombudsman within 180 days of the client's notice of
the firm's rejection of their complaint or recommended
resolution of the complaint, subject to the ombudsman's
authority to receive and investigate a complaint in other
circumstances if the ombudsman considers it fair to do
so. Should NI 31-103 include a deadline for clients to bring
complaints to it? If so, is 180 days the appropriate period?
Comments should be submitted in writing via email or a CD (in
Microsoft Word format) to all of the CSA, and such comments may be
published. The comment period expires on February 15,
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.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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