National Instrument 31-103 "Registration
Requirements" (NI 31-103) is expected to be published in
final form on July 17, 2009 and, subject to government approvals,
come into effect on September 28, 2009. This massive regulatory
reform package will affect virtually everyone operating in the
Canadian securities financial services market-place.
CSA Staff Notice 31-311 issued on June 12, 2009 [available here] describes
the Canadian Securities Administrators' expected timing. CSA
Staff Notice 31-311 also discusses a number of issues concerning
the implementation of NI 31-103 including
Deadlines for filing registration applications under existing
regulations to ensure processing time prior to NI 31-103
implementation. These dates are June 26 (firms), July 15
(individuals registered with advisers) and August 14 (for
individuals registered with other registrants). It is not clear
whether the CSA will process applications for registration under
existing regulations if they are filed after these deadlines.
Transition timelines for many of the new requirements, which
range from 3 – 24 months from the effective date.
The National Registration Database will be frozen from
September 25 to October 12, 2009, which means paper
registration-related filings will have to be made during that
The plan to move existing registrants to the new registration
categories under NI 31-103. During the freeze period existing firm
and individual registrants will be converted to the applicable
categories under NI 31-103.
The amendments to the Securities Act (Ontario) that are
necessary in order to implement NI 31-103 in Ontario have also
taken a step closer to fruition. Ontario Bill 162, which in
Schedule 26 contains the amendments to the Securities Act
(Ontario) that are necessary in order to implement NI 31-103 in
Ontario, received Royal Assent on June 5, 2009. The relevant
provisions will come into force on a date to be proclaimed, which
presumably will coincide with the implementation of NI 31-103. A
copy of Bill 162 in final form is available [here].
In Québec, the proposed legislative amendments to the
Securities Act (Québec) that are necessary in order
to implement NI 31-103 were part of Bill 8 which was tabled in the
National Assembly on March 11, 2009. It is expected that the
National Assembly will adopt Bill 8 by the end of June.
Keeping Reforms In Sight Save The
BLG's Investment Management Group has monitored the progress
of NI 31-103 since the CSA first established the registration
reform project in 2004. Our eight-part series of advisories
– Keeping Reforms in Sight
– were first published in March 2007 following the
publication of the first version of NI 31-103 and then updated and
republished in April 2008 when NI 31-103 was published for further
comment. The second set of our advisories is available [here].
In order to assist our clients in keeping on top of the
significant changes to the Canadian regulatory landscape
represented by NI 31-103, we will be publishing a third series of
advisories in our series Keeping Reforms in
Sight. These advisories will include an updated
National Instrument 31-103 At a Glance, which will outline
the essential features for each registration category, as well as
the transition to the new regime. Other advisories will include
What's New for each of the key registration categories
and an outline of the implications of NI 31-103 for non-Canadian
advisers and dealers.
Please watch for your invitation to BLG's seminars
– Keeping Reforms in Sight – The
Toronto – August 19
Vancouver – September 10
Calgary – September 11
Montréal – September 15
These lively and interactive educational seminars will feature
BLG's experts in registrant regulation and will provide you
with the information you need to get ready to implement NI
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