THE SECURITIES ACT ) Order No. 6193 ) Section 20(1) and National Instrument 31-103 ) September 10, 2010 Registration Requirements and Exemptions ) Transitional relief from the requirement to provide the relationship disclosure information prescribed by section 14.2 of NI 31-103 for IIROC member firms BLANKET ORDER 31-514 Interpretation Unless otherwise defined in this decision or the context otherwise requires, terms used in this decision that are defined in NI 31-103 Registration Requirements and Exemptions (NI 31-103) or National Instrument 14-101 Definitions have the same meaning. WHEREAS Background 1. Under section 14.2(1) [Relationship disclosure information] of NI 31-103, a registered firm must deliver to a client all information that a reasonable investor would consider important about the clients relationship with the registrant. 2. Pursuant to section 16.14 of NI 31-103, section 14.2 of NI 31-103 does not apply until September 28, 2010 to a firm that was registered on September 28, 2009. 3. IIROC is currently finalizing its proposal on relationship disclosure information (IIROC CRM proposal), published on April 9, 2009 in Notice 09-0120 Proposed amendments to the IIROC member rules Provisions respecting amendments implementation of the Client Relationship Model Proposed amendments New Rule XX00 Relationship disclosure. 4. The purpose of the IIROC CRM proposal is to set out detailed requirements to assist registered firms who are IIROC members (Affected Firms) to comply with the general principle in section 14.2(1) of NI 31-103. 5. It is anticipated that the IIROC CRM proposal will be finalized and come into force within one year, but not by September 28, 2010. 6. Absent relief, Affected Firms could incur unwarranted costs in first developing detailed relationship disclosure information to comply with section 14.2(1) of NI 31-103 on September 28, 2010 but then potentially having to change that disclosure to comply with the IIROC CRM proposal when it comes into force.
The Commission is of the opinion that it would not be prejudicial to the public interest to make the order requested. IT IS ORDERED: 1. THAT under s. 20(1) of The Securities Act, R.S.M. 1988, c. S50, an Affected Firm is exempt from section 14.2 of NI 31-103 until the earlier of September 28, 2011 or the date that the IIROC CRM proposal comes into force. 2. THAT this order will come into effect on September 28, 2010. BY ORDER OF THE COMMISSION Deputy Director
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