Notice of Commission Approval - Proposed Amendments to IDA Regulation 1300 Regarding Managed Accounts

THE INVESTMENT DEALERS ASSOCIATION OF CANADA (IDA)

NOTICE OF COMMISSION APPROVAL

PROPOSED AMENDMENTS TO IDA REGULATION 1300

REGARDING MANAGED ACCOUNTS

The Ontario Securities Commission (OSC) approved proposed amendments to IDA Regulation 1300 regarding managed accounts. In addition, the Alberta Securities Commission (ASC) approved and the British Columbia Securities Commission (BCSC) did not object to the proposed amendments. The proposed amendments revise the proficiency and supervisory requirements for managed accounts to take into account industry trends, including the fact that IDA members increasingly rely on external portfolio managers to handle managed accounts and the introduction of centrally managed model portfolio programs.

A copy and description of the proposed amendments were published on November 9, 2001, at (2001) 24 OSCB 6821. No comments were received. As a result of staff review, the IDA has made non-material changes to the proposed amendments, including changes to ensure that sub-advisers hired by IDA members are also subject to conflicts of interest requirements and changes to ensure that the revised proficiency requirements are consistent with the requirements under IDA Policy No. 6. The revised proposed amendments that were approved by the OSC and the ASC and non-objected to by the BCSC are contained in Chapter 13 of this Ontario Securities Commission Bulletin.