The Canadian Securities Administrators (CSA)
published National Instrument 24-102 Clearing Agency
Requirements (NI 24-102) and its Companion Policy in final
form – the amendments were first proposed in November 2014. Most of the amendments are
expected to come into force in February 2016. According to the CSA,
the objective of NI 24-102 is to impose new requirements on
recognized clearing agencies that operate as a central
counterparty, central securities depository or securities
NI 24-102 provides a framework for clearing agency recognition,
including making an application and completing the initial filings
of information (including initial financial statements). According
to the CSA, as a general matter, an entity that is carrying on, or
proposing to carry on, business in Canada as a clearing agency and
that is systemically important to Canada's capital markets, or
that is not subject to comparable regulation by another regulatory
body elsewhere, will generally be required to be recognized. Among
other matters, NI 24-102 also addresses governance requirements,
including board composition requirements and the designation and
functions of a chief risk officer and a chief compliance officer,
requirements to maintain books and records, participation
requirements and rules governing technology and outsourcing
In addition, the CSA have published for comment proposed
amendments to the Companion Policy. The proposed amendments would
incorporate guidance developed jointly between the CSA and the Bank
of Canada in respect of the international standards describe in the
The amendments are expected to come into force on February 17,
2016 with some provisions coming into force on December 31, 2016.
The CSA will be accepting comments on the proposed amendments to
the Companion Policy until February 1, 2016. For further
information, please consult the press release issued by the CSA regarding the
MOU, the CSA Notice of Approval and Notice and Request for
Comments and our previous poston ASC Blanket Order 24-502
granting a temporary exemption from the clearing agency recognition
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.
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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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