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Securities Law

NIN 98/37 - Mutual Reliance Review System for Applications - Extension of Testing [NIN - Rescinded]

Published Date: 1998-07-03
Effective Date: 1998-07-02

At the end of January 1998, the Canadian Securities Administrators (the "CSA") published for comment a Concept Proposal for the Mutual Reliance Review System ("MRRS") for Applications (formerly referred to as the National Application System), which describes the procedures for the processing of an application filed in more than one jurisdiction (see CSA Request for Comment 12-401). At that time, the CSA also authorized the use of the System on a test basis.

Although the comment period ended on June 1, 1998, the CSA has extended the testing of the System until further notice. Law firms that are participating in the testing of the System may continue to do so by following the procedures set out in the Concept Proposal.

As of June 15, 1998, testing was extended to all types of applications for exemptive relief available under the System. Law firms that choose to participate in the testing of the System may, therefore, use the System for any application for relief other than those applications for which relief is traditionally evidenced by a registration certificate or the issuing of a prospectus receipt.

The CSA National Application System Committee is in the process of addressing comments received on the Concept Proposal and assessing the results of the testing. Once this is complete, the Concept Proposal will be converted into a policy (to be known as National Policy 12-201). It is expected that this policy will be published for comment in September 1998.

The MRRS for Applications is part of a broader mutual reliance initiative that is intended to simplify the process for national securities market participants in dealing with multiple provincial regulators. The mutual reliance initiative is focused on three areas of regulation: prospectus review, dealer and adviser registration and exemption application processing. While there are some variations among the three systems of review, all are based on the principle that each securities regulator, while retaining jurisdiction to make decisions in each case, will rely generally on the review of the applicant’s home jurisdiction in deciding whether to approve an application.

Arrangements among the CSA with respect to the MRRS have been formulated in a draft Memorandum of Understanding ("MOU"), which was published for comment on June 19, 1998 (see NIN#98/29). While the draft MOU sets out the roles and responsibilities assumed by the Canadian securities regulatory authorities under the MRRS generally, the proposed policy will set out the specific requirements of the MRRS for Applications.

Questions and/or requests to participate in the testing of the system may be referred to any of the members of the CSA National Application System Committee

Margaret Sheehy or Simon Millner
British Columbia Securities Commission
865 Hornby Street, 2nd Floor
Vancouver, British Columbia V6Z 2H4
Telephone: (604) 899-6650 / (604) 899-6642
Fax: (604) 899-6700

Marsha Manolescu
Alberta Securities Commission
19th Floor, 10025 Jasper Avenue
Edmonton Alberta T5J 3Z5
Telephone: (403) 422-1914
Fax: (403) 422-0777

Dean Murrison, Committee Chairperson
Saskatchewan Securities Commission
800, 1920 Broad Street
Regina, Saskatchewan S4P 3V7
Telephone: 306-787-5879
Fax: 306-787-5899

Douglas Brown
Manitoba Securities Commission
1130 - 405 Broadway
Winnipeg, Manitoba R3C 3L6
Telephone: (204) 945-0605
Fax: (204) 945-0330

Margo Paul
Ontario Securities Commission
20 Queen Street West, Suite 800 Box 55
Toronto, Ontario M5H 3S8
Telephone: (416) 593-8136
Fax: (416) 593-8244

Sylvie Lalonde
Commission des valeurs mobilières du Québec
Tour de la Bourse
C.P. 246, 17th Floor
Montréal, Québec H4Z 1G3
Telephone: (514) 873-5009 ext.328
Fax: (514) 873-3090

Shirley Lee
Nova Scotia Securities Commission
1690 Hollis Street
P.O. Box 458
Halifax, Nova Scotia B3J 3J9
Telephone: (902) 424-5441
Fax: (902) 424-4625

DATED at Vancouver, British Columbia, on July 2, 1998

Joyce C. Maykut, Q.C.
Vice Chair

Ref: CSA Request for Comment 12-401