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Jurisdictions working toward a national securities regulator have released draft rules that would bind them under a single system. They’re open for comment until December 23, 2015.

Rules for registering as a B.C. investment fund manager would change under proposed national securities rules, says law firm Gowlings.

Under present B.C. rules, a firm must only register in the province if it operates a fund there. The new rules, which follow an Ontario model, would require firms to register if they have any security holders in the province or any participating jurisdiction.

Read: Chair won’t pressure provinces on national regulator

In Ontario, some rules relating to prospectus disclosure and dealers operating in the U.S. over-the-counter market would be changed.

Gowlings has analyzed the draft law and says that many existing national and multilateral polities are being adopted largely in their current form, but there are nine new regulations. Those are meant to harmonize local laws.

Read: PEI joins plan for national securities regulator

There are also significant transitional changes to how derivatives are regulated, says Gowlings. The two transitional rules split derivatives into two categories: over the counter and exchange contracts, says Gowlings. These are meant to be in force until the CSA finishes modernizing rules.

To date, five provinces, including British Columbia and Ontario, as well as the Yukon territory, have signed on to the national regulator. Quebec says it will challenge the project at court.

Read: Alberta to reciprocate sanctions automatically

Every province that agrees to a national regulator would have to adopt the legislation. The group must still draft a federal Capital Markets Stability Act. Together, these laws will be the framework for a national regulator.

The group plans to release more draft legislation this fall, which will propose how to regulate fees and prospectus exemptions.

For more on the changes, read here.

Originally published on Advisor.ca

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