CSA seeks input on proposed derivatives registration rule

The CSA is seeking feedback on a proposed regime for registering dealers and advisors who trade and advise in the over-the-counter (OTC) derivatives markets in Canada.

The regime comprises the Proposed National Instrument 93-102 Derivatives: Registration and a proposed companion policy, 93-102 Derivatives: Registration.

The CSA is looking to improve investor protection for OTC derivatives markets and create a regime that’s consistent with international standards, a release from the regulator said.

“Many of the entities that would be required to be registered under the Proposed Instrument are already subject to other regulatory regimes,” said Louis Morisset, chair and president of CSA, in the release. “The Proposed Instrument includes provisions to minimize duplicative regulation for these entities.”

The instrument creates the following for dealers and advisors:

• Requirements designed to mitigate risks to market participants;
• Requirements for key staff members of derivatives dealers and advisers to have specific education, training and experience, and;
• Requirements for firms and individual representatives to register with applicable securities dealers in Canada.

Read: CSA aims to reduce regulatory burden in public markets

It also excludes and exempts certain persons or companies from the requirements to register as a derivatives dealer or as a derivatives adviser subject to certain conditions.

The CSA expects to publish Proposed National Instrument 93-101 Derivatives: Business Conduct (NI 93-101), which was published for comment on April 4, 2017, for a second comment period during the new consultation period.

The comment period will be 150 days to let stakeholders to consider both proposals together. Comments will be accepted until Sept. 17.

Read the full proposal here.

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Staff

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