Exemption Orders (Discretionary)
ETRADE CANADA SECURITIES CORPORATION
2001 BCSECCOM 547
Headnote
Mutual Reliance Review System for Exemptive Relief Applications – Relief for registrants from the suitability requirements of the Securities Rules and the IDA, subject to the terms and conditions set out in the Decision Document. Variation of former decision in order to extend the time period for Client Acknowledgements.
Applicable British Columbia Provisions
Securities Act, R.S.B.C. 1996, c. 418, ss. 48 and 171
Securities Rules, B.C. Reg. 194/97, s. 48(1)(b)
IN THE MATTER OF THE SECURITIES LEGISLATION OF BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN, NOVA SCOTIA, NEWFOUNDLAND AND ONTARIO
AND
IN THE MATTER OF THE MUTUAL RELIANCE REVIEW SYSTEM FOR EXEMPTIVE RELIEF APPLICATIONS
AND
IN THE MATTER OF E*TRADE CANADA SECURITIES CORPORATION
MRRS DECISION DOCUMENT
WHEREAS the local securities regulatory authority or regulator (the “Decision Maker”) in each of the provinces of British Columbia, Alberta, Saskatchewan, Newfoundland, Nova Scotia and Ontario (collectively, the “Jurisdictions”) has received an application from E*TRADE Canada Securities Corporation (the “Filer”), formerly known as VERSUS Brokerage Services Inc., to vary the MRRS Decision Document dated September 7, 2000 IN THE MATTER OF VERSUS BROKERAGE SERVICES INC. which provided, subject to terms and conditions, relief from suitability obligations under the securities legislation of the Jurisdictions and decided, subject to terms and conditions and other than under the securities legislation of Newfoundland and Nova Scotia, that suitability requirements of the Investment Dealers Association of Canada do not apply to the Filer (the “Suitability Relief Order”);
AND WHEREAS the terms “Suitability Requirements”, “IDA Suitability Requirements”, “Registered Representatives” and “Client Acknowledgement” shall each have the respective meaning ascribed thereto under the Suitability Relief Order;
AND WHEREAS the Filer wishes to vary the Suitability Relief Order to extend the specified time within which it must continue to comply with Suitability Requirements and IDA Suitability Requirements for existing client accounts for which no Client Acknowledgement is received from March 8, 2001 to June 30, 2001 and to extend the specified time after which restrictions are placed on existing client accounts for which no Client Acknowledgement is received from March 8, 2001 to June 30, 2001;
AND WHEREAS under the Mutual Reliance Review System for Exemptive Relief Applications (the “System”), the Ontario Securities Commission is the principal regulator for this application;
AND WHEREAS the Filer has represented to the Decision Makers that:
1. the Filer is now a company existing under the Companies Act (Nova Scotia) and the Filer has Registered Representatives registered in each of the Jurisdictions and executive officers located in the province of Ontario;
2. the Filer and its Registered Representatives will continue to comply with the Suitability Requirements and IDA Suitability Requirements for client accounts for which no Client Acknowledgement is received until June 30, 2001;
3. after June 30, 2001, the Filer will not permit a transaction in an account for which a Client Acknowledgement has not been received unless the transaction is a sale for cash or a transfer of assets to another account;
4. except as noted above, the Filer confirms the representations to the Decision Makers in the Suitability Relief Order; and
5. subject to this variation order being granted, the Filer will inform all clients who have not yet provided a Client Acknowledgement that the specified time within which the Filer must continue to comply with Suitability Requirements and IDA Suitability Requirements has been extended to June 30, 2001 and the specified time after which restrictions are placed on existing client accounts for which no Client Acknowledgement is received has been extended to June 30, 2001;
AND WHEREAS under the System, this MRRS Decision Document evidences the decision of each Decision Maker (collectively, the “Decision”);
AND WHEREAS each of the Decision Makers is satisfied that the test contained in the Legislation that provides the Decision Maker with the jurisdiction to make the Decision has been met;
THE DECISION of the Decision Makers under the Legislation is that the Suitability Relief Order is amended by replacing term and condition 6 and 7 of the Suitability Relief Order in respect of Suitabililty Requirements with the following:
“ 6. the Filer and its Registered Representatives continue to comply with their Suitability Requirements and IDA Suitability Requirements for client accounts for which no Client Acknowledgement is received until June 30, 2001;
7. after June 30, 2001, the Filer will not permit transactions in an account for which a Client Acknowledgement has not been received unless the transaction is a sale for cash or a transfer of assets to another account;”
March 6, 2001
William R. Gazzard
THE DECISION of the Decisions Makers, other than Nova Scotia and Newfoundland, is that the Suitability Relief Order is amended by replacing term and condition 6 and 7 of the Suitability Relief Order in respect of IDA Suitabililty Requirements with the following:
“6. the Filer and its Registered Representatives continue to comply with their Suitability Requirements and IDA Suitability Requirements for client accounts for which no Client Acknowledgement is received until June 30, 2001;
7. after June 30, 2001, the Filer will not permit transactions in an account for which a Client Acknowledgement has not been received unless the transaction is a sale for cash or a transfer of assets to another account;”
March 6, 2001
J. A. Geller R. Stephen Paddon