Securities Law

NPS 49 - Self-Regulatory Organization Membership [NPS - Rescinded]

Published Date: 1993-05-21
Effective Date: 1993-06-30
Rescinded Date: 2009-04-07

National Policy Statement 49

In October 1992, the Canadian Securities Administrators ("CSA") released for comment Draft National Policy Statement No. 49 (the "Draft Policy") on required membership in a self-regulatory organization ("SRO"). The CSA are now issuing National Policy Statement No. 49 (the "Policy") in its final form.

The Commission is publishing the Policy in the Weekly Summary of May 21, 1993. The Policy will become effective on June 30, 1993 for new registrations and on June 30, 1994 for renewals of registration of "national dealers", as defined in the Policy.

The term national dealer includes full service dealers and discount brokers that are affiliated with a current SRO member where the dealer, the SRO member or both carry on business in more than one province or territory of Canada.

The Policy mandates membership in an SRO and contributions to the Canadian Investor Protection Fund for all national dealers. Accordingly, subject to the effective dates of the Policy, a national dealer carrying on business in British Columbia must be a member of either the Vancouver Stock Exchange or the Pacific District of the Investment Dealers Association of Canada.

While the Policy is substantially the same as the Draft Policy, several amendments have been made to clarify which market participants are required to comply with the Policy and, therefore, registrants and their counsel should review the Policy in its entirety.