Notice of Commission Approval - Amendments to IDA By-law No. 15 Regarding the Provision of Financial Assistance by the IDA to Securities Industry Organizations and Securities Regulatory Organizations

Investment Dealers Association rule review

AMENDMENTS TO IDA BY-LAW NO. 15

PROVISION OF FINANCIAL ASSISTANCE BY THE IDA TO
SECURITIES INDUSTRY ORGANIZATIONS
AND SECURITIES REGULATORY ORGANIZATIONS

NOTICE OF COMMISSION APPROVAL

The Ontario Securities Commission approved amendments to IDA By-law No. 15 regarding the provision of financial assistance by the IDA to securities industry organizations and securities regulatory organizations, subject to the following two conditions:

1.

Before the proposed amendment becomes effective, the IDA will revise proposed by-law 15.11 by inserting the words "except Member" in order to clarify the IDA's intention. Once it is in effect, the relevant part of the by-law will read as follows:

"... to, of or in respect of any person or organization, except Members, engaged in regulation, education, registration, operations, trading, customer protection or other participation in or in respect of the Canadian capital markets and the business of Members of the Association..."
2. Thirty days prior to exercising its powers under section 15.11, the IDA must notify the principal regulator that the IDA intends to provide financial support to other securities industry organizations or securities regulatory organizations. The IDA must also include details of the financial support and provide a copy of its most recent interim financial statements. Currently, the principal regulator is the Ontario Securities Commission.

In addition, the Saskatchewan Securities Commission approved, the Alberta Securities Commission did not disapprove and the British Columbia Securities Commission did not object to these amendments, subject to the same two conditions. The amendments will streamline the process for the IDA to provide financial support to securities industry organizations and securities regulatory organizations, while tightening the controls surrounding the authorization of such support. The amendments are housekeeping in nature. A copy of the amendments is published in Chapter 13 of the OSC Bulletin.