CSA proposes enhancements to custody and other requirements

The CSA has published proposed amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) and National Instrument 33-109 Registration Information.

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The amendments include proposals to enhance custody requirements for certain registrants, clarify activities that may be conducted by exempt market dealers and incorporate relief from certain CRM2 requirements into NI 31-103.

The proposed custody amendments are intended to address potential intermediary risks, enhance the protection of client assets and codify existing custodial best practices.

The proposals also contain amendments to NI 31-103 and its companion policy to:

• clarify the activities that may be conducted under the exempt market dealer category of registration in respect of trades in prospectus-qualified securities;
• expand an existing exemption from the dealer registration requirement for registered advisers who trade in the securities of affiliated investment funds to their clients’ managed accounts; and
• make permanent temporary CRM2 relief granted in May 2015 as well as update guidance regarding the delivery of information required under CRM2 to address matters that have arisen in the course of its implementation.

The comment period closes October 5, 2016.

Also read:

CSA lists regulatory achievements for 2013-2016

OSFI intensifies scrutiny of mortgage lenders

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.