rules-regulation

The Canadian Securities Administrators (CSA) is seeking a second round of comments on its proposed rule for a business conduct regime for regulating derivatives dealers and advisers.

The Proposed National Instrument 93-101 Derivatives: Business Conduct and Proposed Companion Policy 93-101 CP Derivatives: Business Conduct would establish a business conduct regime for regulating dealers and advisers in over-the-counter (OTC) derivatives, said the CSA in a release.

Changes to the revised rule include to the definition of “eligible derivatives party,” which now includes a category for a commercial hedger; a revision to some of the restrictions on derivatives party assets; and a change to certain senior manager obligations, the CSA said.

Read: CSA seeks input on proposed derivatives registration rule

The rule also aims to ensure that derivatives dealers and advisers “are subject to consistent regulation that does not result in any competitive disadvantage.”

The proposed instrument includes requirements relating to conflicts of interest, know-your-derivatives party obligations, compliance and record-keeping, and reporting and senior management duties.

The rule was first published for comment in April 2017. Along with the Proposed National Instrument 93-102 Derivatives: Registration and a related companion policy (NI 93-102), released in April, it was created to help protect derivatives markets.

Comments should be submitted by Sept. 17. CSA members also plan on holding roundtables about the rule.

Read the request for comments here.

Also read:

CSA publlshes guidance on coin and token offerings

CSA reviews regulatory burden for investment fund issuers

Originally published on Advisor.ca
Add a comment

Have your say on this topic! Comments are moderated and may be edited or removed by
site admin as per our Comment Policy. Thanks!