The Ontario Securities Commission, the Autorité des
marchés financiers and the Manitoba Securities Commission
have announced that "end users" will not be required to
comply with derivatives trade reporting requirements in respect of
trades between an end user and an affiliate in certain
circumstances. An "end user" is essentially a reporting
counterparty that is not a derivatives dealer, a clearing agency,
or, in Quebec and Manitoba, a Canadian financial institution.
End users are subject to the trade reporting obligation as of
June 30, 2015 under local trade reporting rules adopted in these
three provinces. However, the AMF and the MSC have granted
temporary relief for end users in respect of certain
inter-affiliate trades pending codification of this relief in their
respective local rules. The OSC has indicated in its staff notice
that it intends to propose amendments to the local Ontario trade
reporting rule to provide similar relief.
OSC staff state that they are considering proposing amendments
to the trade reporting rules to reduce the frequency and data
requirements for trade reporting of inter-affiliate transactions by
end users. OSC staff are also considering proposing amendments
which would permit the reporting of certain end user
inter-affiliate transactions pursuant to the laws of a foreign
jurisdiction if the affiliate is reporting under the rules of that
jurisdiction. In other words, unlike the AMF and MSC notices, the
OSC staff notice does not appear to contemplate a complete
exemption from reporting of inter-affiliate trades by end
Meanwhile, the AMF and MSC have granted temporary relief
provided certain conditions are satisfied. First, the transaction
to which the end user is a party must be between the end user and a
counterparty which is an affiliate and the financial statements of
the parties must be prepared on a consolidated basis in accordance
with National Instrument 52-107 Acceptable Accounting
Principles and Auditing Standards. Second, the transaction must
be governed by a written agreement which sets out the terms of the
transaction, including terms relating to centralized evaluation,
measurement and risk controls designed to identify and manage
risks. Third, the parties to the transaction must maintain records
of the transaction and must make these records available to the MSC
and the AMF, as applicable, upon request.
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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