Staff Notice: 33-718 - Networking Applications

STAFF NOTICE 33-718

NETWORKING APPLICATIONS

On August 27, 1999 the CSA published the Distribution Structures Position Paper (the "Paper"). The Paper outlinesthe CSA position on a number of issues related to the structuresemployed by registrants including referral arrangements, relationshipsbetween dealers and salespersons and the use of trade names.The CSA has begun implementation of the Paper through focussedcommunications, review of registrant compliance and review ofSRO rules.

Networking arrangements between financial institutions and registrants made in accordance with thePrinciples of Regulation (1988) 11 O.S.C.B. 4436 may touch on issues addressed in the Paper. Staffsuggests that registrants making application for approval of networking arrangements ensure thatstructures within the networking arrangement are in compliance with the Paper.

Questions may be addressed to:

Jennifer Elliott
Legal Counsel
Market Regulation
(416) 593-8109
[email protected]

or

Julia Dublin
Senior Legal Counsel
General Counsel's Office
(416) 593-8103
[email protected]