Staff of the Canadian Securities Administrators have been
signalling for some time their goal to have proposed National
Instrument 31-103 Registration Requirements come into
force by March 31, 2009. We understand that the CSA now expects
this effective date to be delayed until mid-September 2009, due to
the timing of the legislative amendments that are necessary in
Ontario and Quebec before the OSC and the AMF can finalize the
rule. This means, with the transition periods proposed, that
compliance with the new regime would take place during 2010,
although certain of the new rules would be effective
While other CSA members may be in a position to implement the
rule earlier than mid-September 2009, it is unlikely that this will
happen, given the extreme disruption that would result from a
staggered implementation across the Canadian provinces and
We expect that the CSA will make changes to the various
instruments in response to the over 200 comment letters received
during this most recent comment period. However, the CSA have not
yet indicated whether the changes will be of such a material nature
that the instruments will need to be published for another comment
period under provincial securities legislation.
We note that IIROC currently has out for comment, proposed
amendments to its rules to make them consistent with the objectives
of National Instrument 31-103. The comment period for these
proposed amendments ends on December 29, 2008.
The comment periods for the IIROC and MFDA rule proposals
relating to the client relationship model ended earlier this year
and we understand both SROs are reviewing the comments received
with a view to ensuring consistency.
We will continue to monitor and keep you advised of developments
in this area. BLG's series of bulletins on the second version
of proposed National Instrument 31-103 are available on our website
www.blgcanada.com. For a copy of our Proposed National
Instrument 31-103 At a Glance please
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