OSC Notice of General Order – Relief in respect of Client Focused Reforms Conflict of Interest Provisions of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations
OSC Notice of General Order – Relief in respect of Client Focused Reforms Conflict of Interest Provisions of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations
On October 3, 2019, the Canadian Securities Administrators (the "CSA") adopted amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations ("NI 31-103") to implement reforms to enhance the client-registrant relationship (the "Client Focused Reforms"). As a result of the Coronavirus pandemic ("COVID-19"), the Ontario Securities Commission, in parallel with all other CSA jurisdictions, is extending the timeline for the implementation of the Client Focused Reforms relating to conflicts of interest in Part 13 of NI 31-103 that would otherwise have come into effect on December 31, 2020.
Description of the Order
The order postpones by six months the effective date by which a registrant will have to comply with the Client Focused Reforms relating to conflicts of interest in Part 13 of NI 31-103, which are referred to in paragraph 35(1)(a) of the amending instrument published on October 3, 2019. The relief is conditional on a registrant complying with those provisions of Part 13 of NI 31-103 that were otherwise subject to amendment on December 31, 2020 as they read on December 30, 2020.
Reasons for the Order
As a result of the outbreak of COVID-19 and the resulting disruptions to registrants' access to office facilities, personnel and other key resources, many registrants will not be in a position to implement the conflicts of interest Client Focused Reforms by the original effective date of December 31, 2020. Under the circumstances, the Commission has determined that it would not be prejudicial to the public interest to provide registrants with an additional six months to implement the conflict of interest Client Focused Reforms.
Day on which the Order Ceases to Have Effect
The order will come into effect on December 31, 2020 and will cease to have effect on June 30, 2021.