Canadian Securities Regulators approve requirements on use of clients brokerage commissions

CSA Securities

Toronto – The Canadian Securities Administrators (CSA) today announced the approval of National Instrument 23-102 Use of Client Brokerage Commissions and related Companion Policy 23-102CP. NI 23-102 clarifies the obligations of advisers and registered dealers when advisers obtain goods and services other than order execution in connection with client brokerage commissions, and also introduces new disclosure requirements for advisers.

“It is extremely important that advisers take appropriate steps to ensure that they don’t place their interests ahead of those of their clients and that they provide their clients with proper disclosure where appropriate,” said Jean St-Gelais, Chair of the CSA and President and Chief Executive Officer of the Autorité des marchés financiers.

In addition, on October 9, 2009, the CSA plans to publish for comment, consequential amendments to investment fund prospectus disclosure forms:  81-101F2 Contents of Annual Information Form under National  81-101 Mutual Fund Prospectus Disclosure; and Form 41-101F2 Information Required in an Investment Fund Prospectus under National Instrument 41-101 General Prospectus Requirements.

The purpose of the proposed form amendments will be to ensure consistency between the disclosure requirements under NI 23-102 relating to client brokerage commissions and similar disclosure prescribed for investment funds. NI 23-102 will replace OSC  1.9 Use by dealers of brokerage commissions as payment for goods or services other than order execution services (“Soft Dollar” Deals), and the Autorité des marchés financiers Policy Statement Q-20 of the same name. Pending necessary approvals, NI 23-102 is expected to come into force in all jurisdictions on June 30, 2010. NI 23-102 is available on various CSA members’ websites. The proposed form amendments will be available on the various CSA members’ websites on October 9, 2009, and the comment period for the Form Amendments will end on January 7, 2010.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

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For more information:

CSA member name

Point of contact

Phone number

Autorité des marchés financiers

Sylvain Théberge

514 940-2176

Alberta Securities Commission

Mark Dickey

403 297-4481

British Columbia Securities Commission

Ken Gracey

604 899-6577

Consumer, Corporate and Insurance Services, Registrar of Securities, , Prince Edward Island

Katharine Tummon

902 368-4542

Financial Services Regulation Division, Newfoundland and Labrador

Doug Connolly

709 729-2594

Manitoba Securities Commission

Ainsley Cunningham

204 945-4733

New Brunswick Securities Commission

Wendy Connors-Beckett

506 643-7745

Nova Scotia Securities Commission

Natalie MacLellan

902 424-8586

Ontario Securities Commission

Carolyn Shaw-Rimmington

416 593-232361

Saskatchewan Financial Services Commission

Barbara Shourounis

306 787-5842

Securities Office, Northwest Territories

Donn MacDougall

867 920-8984

Securities Office, Nunavut

Louis Arki

867 975-6587

Securities Office, Yukon

Fred Pretorius

867 667-5225