Final Rule (effective January 1, 1997): OSC Rule - 32-502 - Registration Exemption for Certain Trades by Financial Intermediaries

ONTARIO SECURITIES COMMISSION RULE 32-502

REGISTRATION EXEMPTION FOR CERTAIN TRADES

BY FINANCIAL INTERMEDIARIES⁽¹⁾

PART 1 REGISTRATION EXEMPTION FOR CERTAIN TRADES BY FINANCIAL INTERMEDIARIES^{(2) (3)}

1.1 Registration Exemption

(1) Up to and including March 31, 1998⁽⁴⁾, section 25 of the Act does not apply to a trade by a financial intermediary

(a) of the type described in subsection 35(1) of the Act or section 151 of the Regulation⁽⁵⁾; or

(b) in securities described in subsection 35(2) of the Act⁽⁶⁾.

(2) Up to and including March 31, 1998, clause 25(1)(b) of the Act does not apply to a trade by a financial intermediary of the type described in subsection209(1) of the Regulation.

(3) The exemptions contained in subsections (1) and (2) do not apply to a trade in a security of a mutual fund.

PART 2 EFFECTIVE DATE

2.1 Effective Date - Unless otherwise required by section 143.4 of the Act, this Rule comes into force on January 1, 1997.

1. The Rule is derived from the Blanket Ruling In the Matter of Certain Amendments to Regulation 1015 of the Revised Regulations of Ontario 1990 Madeunder the Securities Act (1994), 17 OSCB 5516 (the "Deemed Rule") now a deemed rule. The title has been changed to be more descriptive of the reliefprovided.

2. A general definition rule has been published. It contains definitions of certain terms used in more than one rule. The proposed general definition rule alsoprovides, among other things, that terms used in a rule and defined in section 1 of the Securities Act or subsection 1(2) of the Regulation have the respectivemeaning given to them in the Securities Act or Regulation, as appropriate.

3. The term "financial intermediary" is defined in the general definition rule as having "the meaning ascribed to that term in subsection 204(1) of theRegulation".

4. The Deemed Rule expires on December 31, 1996. We have inserted a sunset provision of March 31, 1998 into this Rule.

5. The term "Regulation" is defined in the general definition rule as meaning "Regulation 1015 of the Revised Regulations of Ontario, 1990, as amended".

6. The Deemed Rule exempts financial intermediaries from the requirements of subsection 206(1) of the Regulation except with respect to trades in securitiesof mutual funds. Subsections (1) and (3) reproduce that relief by providing relief from section 25 of the Act for certain trades referred to in the Act andRegulation.