31-103 - Registration Requirements and Exemptions [NI Advance Notice - Lapsed]
| Published Date: | 2009-07-17 |
|---|---|
| Effective Date: | 2009-09-28 |
| Rescinded Date: | 2009-09-25 |
| Document(s): |
Concurrently Published:
- 31-103CP - Registration Requirements and Exemptions [CP Advance Notice - Lapsed]
- 31-103F1 - Calculation of Excess Working Capital [F Advance Notice - Lapsed]
- 31-103F2 - Submission to Jurisdiction and Appointment of Agent for Service [F Advance Notice - Lapsed]
- 31-103F3 - Use of Mobility Exemption [F Advance Notice - Lapsed]
- BCN 2009/12 - Advance Notice of National Instrument 31-103 Registration Requirements and Exemptions,Companion Policy 31-103CP Registration Requirement and Exemptions,BC Interpretation Note XX, and BC Instrument 33-5xx and its companion policy, and consequential amendments to national and local instruments [BCN - Lapsed]
Table of contents
Part 1 Interpretation | |
Individual | Part 2 Categories of registration for individuals |
| Part 3 Registration requirements - individuals Division 1 General proficiency requirements 3.1 Definitions 3.2 U.S. equivalency 3.3 Time limits on examination requirements Division 2 Education and experience requirements 3.4 Proficiency - initial and ongoing 3.5 Mutual fund dealer - dealing representative 3.6 Mutual fund dealer - chief compliance officer 3.7 Scholarship plan dealer - dealing representative 3.8 Scholarship plan dealer - chief compliance officer 3.9 Exempt market dealer - dealing representative 3.10 Exempt market dealer - chief compliance officer 3.11 Portfolio manager - advising representative 3.12 Portfolio manager - associate advising representative 3.13 Portfolio manager - chief compliance officer 3.14 Investment fund manager - chief compliance officer Division 3 Membership in a self-regulatory organization 3.15 Who must be approved by an SRO before registration 3.16 Exemptions from certain requirements for SRO-approved persons | |
| Part 4 Restrictions on registered individuals 4.1 Restriction on acting for another registered firm 4.2 Associate advising representatives - pre-approval of advice | |
| Part 5 Ultimate designated person and chief compliance officer 5.1 Responsibilities of the ultimate designated person 5.2 Responsibilities of the chief compliance officer | |
| Part 6 Suspension and revocation of registration - individuals 6.1 If individual ceases to have authority to act for firm 6.2 If IIROC approval is revoked or suspended 6.3 If MFDA approval is revoked or suspended 6.4 If sponsoring firm is suspended 6.5 Dealing and advising activities suspended 6.6 Revocation of a suspended registration - individual 6.7 Exception for individuals involved in a hearing 6.8 Application of Part 6 in Ontario | |
| Firm registration | Part 7 Categories of registration for firms 7.1 Dealer categories 7.2 Adviser categories 7.3 Investment fund manager category |
| Part 8 Exemptions from the requirement to register Division 1 Exemptions from dealer and underwriter registration 8.1 Interpretation of “trade” in Québec 8.2 Definition of “securities” in Alberta, British Columbia, New Brunswick and Saskatchewan 8.3 Interpretation - exemption from underwriter registration requirement 8.4 Person or company not in the business of trading in British Columbia, Manitoba and New Brunswick 8.5 Trades through or to a registered dealer 8.6 Adviser - non-prospectus qualified investment fund 8.7 Investment fund reinvestment 8.8 Additional investment in investment funds 8.9 Additional investment in investment funds if initial purchase before September 14, 2005 8.10 Private investment club 8.11 Private investment fund - loan and trust pools 8.12 Mortgages 8.13 Personal property security legislation 8.14 Variable insurance contract 8.15 Schedule III banks and cooperative associations - evidence of deposit 8.16 Plan administrator 8.17 Reinvestment plan 8.18 International dealer 8.19 Self-directed registered education savings plan 8.20 Exchange contract - Alberta, British Columbia, New Brunswick and Saskatchewan 8.21 Specified debt 8.22 Small security holder selling and purchase arrangements Division 2 Exemptions from adviser registration 8.23 Dealer without discretionary authority 8.24 IIROC members with discretionary authority 8.25 Advising generally 8.26 International adviser Division 3 Exemptions from investment fund manager registration 8.27 Private investment club 8.28 Capital accumulation plan exemption 8.29 Private investment fund - loan and trust pools Division 4 Mobility exemption - firms 8.30 Client mobility exemption - firms | |
| Part 9 Membership in a self-regulatory organization 9.1 IIROC membership for investment dealers 9.2 MFDA membership for mutual fund dealers 9.3 Exemptions from certain requirements for SRO members | |
| Part 10 Suspension and revocation of registration - firms Division 1 When a firm’s registration is suspended 10.1 Failure to pay fees 10.2 If IIROC membership is revoked or suspended 10.3 If MFDA membership is revoked or suspended 10.4 Activities not permitted while a firm’s registration is suspended Division 2 Revoking a firm’s registration 10.5 Revocation of a suspended registration - firm 10.6 Exception for firms involved in a hearing 10.7 Application of Part 10 in Ontario | |
Business | Part 11 Internal controls and systems Division 1 Compliance 11.1 Compliance system 11.2 Designating an ultimate designated person 11.3 Designating a chief compliance officer 11.4 Providing access to board Division 2 Books and records 11.5 General requirements for records 11.6 Form, accessibility and retention of records Division 3 Certain business transactions 11.7 Tied settling of securities transactions 11.8 Tied selling 11.9 Registrant acquiring a registered firm’s securities or assets 11.10 Registered firm whose securities are acquired |
| Part 12 Financial condition Division 1 Working capital 12.1 Capital requirements 12.2 Notifying the regulator of a subordination agreement Division 2 Insurance 12.3 Insurance - dealer 12.4 Insurance - adviser 12.5 Insurance - investment fund manager 12.6 Global bonding or insurance 12.7 Notifying the regulator of a change, claim or cancellation Division 3 Audits 12.8 Direction by a regulator to conduct an audit or review 12.9 Co-operating with the auditor Division 4 Financial reporting 12.10 Annual financial statements 12.11 Interim financial information 12.12 Delivering financial information - dealer 12.13 Delivering financial information - adviser 12.14 Delivering financial information - investment fund manager | |
| Client relationships | Part 13 Dealing with clients - individuals and firms Division 1 Know your client and suitability 13.1 Investment fund managers exempt from this Division 13.2 Know your client 13.3 Suitability Division 2 Conflicts of interest 13.4 Identifying and responding to conflicts of interest 13.5 Restrictions on certain managed account transactions 13.6 Disclosure when recommending related or connected securities Division 3 Referral arrangements 13.7 Definitions - referral arrangements 13.8 Permitted referral arrangements 13.9 Verifying the qualifications of the person or company receiving the referral 13.10 Disclosing referral arrangements to clients 13.11 Referral arrangements before this Instrument came into force Division 4 Loans and margin 13.12 Restriction on lending to clients 13.13 Disclosure when recommending the use of borrowed money Division 5 Complaints 13.14 Application of this Division 13.15 Handling complaints 13.16 Dispute resolution service |
| Part 14 Handling client accounts - firms Division 1 Exemption for investment fund managers 14.1 Investment fund managers exempt from Part 14 Division 2 Disclosure to clients 14.2 Relationship disclosure information 14.3 Disclosure to clients about the fair allocation of investment opportunities 14.4 When the firm has a relationship with a financial institution 14.5 Notice to clients by non-resident registrants Division 3 Client assets 14.6 Holding client assets in trust 14.7 Holding client assets - non-resident registrants 14.8 Securities subject to a safekeeping agreement 14.9 Securities not subject to a safekeeping agreement Division 4 Client accounts 14.10 Allocating investment opportunities fairly 14.11 Selling or assigning client accounts Division 5 Account activity reporting 14.12 Content and delivery of trade confirmation 14.13 Semi-annual confirmations for certain automatic plans 14.14 Client statements | |
| Exemption from this Instrument | Part 15 Granting an exemption 15.1 Who can grant an exemption |
| Transition and timing | Part 16 Transition 16.1 Change of registration categories - individuals 16.2 Change of registration categories - firms 16.3 Change of registration categories - limited market dealers 16.4 Registration for investment fund managers active when this Instrument comes into force 16.5 Temporary exemption for Canadian investment fund manager registered in its principal jurisdiction 16.6 Temporary exemption for foreign investment fund managers 16.7 Registration of exempt market dealers 16.8 Registration of ultimate designated persons 16.9 Registration of chief compliance officers 16.10 Proficiency for dealing and advising representatives 16.11 Capital requirements 16.12 Continuation of existing discretionary relief 16.13 Insurance requirements 16.14 Relationship disclosure information 16.15 Referral arrangements 16.16 Complaint handling 16.17 Client statements - mutual fund dealers 16.18 Transition to exemption - international dealers 16.19 Transition to exemption - international advisers 16.20 Transition to exemption - portfolio manager and investment counsel (foreign) |
| Part 17 When this Instrument comes into force 17.1 Effective date | |
| Forms | Form 31-103F1 Calculation of Excess Working CapitaL Form 31-103F2 Submission to Jurisdiction and Appointment of Agent for Service Form 31-103F3 Use of Mobility Exemption |
| Appendices | Appendix A - Bonding and Insurance Clauses Appendix B - Subordination Agreement Appendix C - New Category Names - Individuals Appendix D - New Category Names - Firms Appendix E - Non-Harmonized Capital Requirements Appendix F - Non-Harmonized Insurance Requirements |