31-518 (Blanket Order) - IIROC 2014 CRM2 Amendments

Securities Act
R.S.P.E.I. 1988, Cap.-S-3.1

Document Type: Blanket Order
Document No.: 31-518
Subject: IIROC 2014 CRM2 Amendments
Effective Date: July 15, 2014

Blanket Order 31-518

IIROC 2014 CRM2 Amendments

Part 1 Definitions

1.1 Unless otherwise defined in this decision or the context otherwise requires, terms used in this decision that are defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) or National Instrument 14-101 Definitions have the same meaning in this Blanket Order.

Part 2 Background

2.1 Under section 9.3 [exemptions from certain requirements for IIROC member] of NI 31-103, a registered firm that is a member of IIROC is exempt from certain requirements in NI 31-103 if the registered firm complies with the corresponding IIROC Provisions that are in effect.  The term “IIROC Provision” is defined in section 1.1 of NI 31-103 to mean “a by-law, rule, regulation or policy of IIROC named in Appendix G, as amended from time to time”.

2.2 On July 15, 2014, the following provisions of NI 31-103 will come into effect:

(a) paragraph 14.2(2)(m) [relationship disclosure information]; and

(b) section 14.2.1 [pre-trade disclosure of charges]; and

(c) paragraphs 14.12(1)(b.1) and (c.1) [content and delivery of trade confirmation] paragraphs (a) to (c) collectively, the csa 2014 CRM2 Amendments). Amendments).

2.3 On July 15, 2014, certain Dealer Member Rules in relation to the implementation of Client Relationship Model – Phase 2 (the IIROC 2014 CRM2 Amendments) will come into effect.

2.4 IIROC Dealer Member Rules affected by the IIROC 2014 CRM2 Amendments are not reflected in Appendix G of NI 31-103.

2.5 The following table sets out the relevant NI 31-103 sections of the CSA 2014 CRM2 Amendments and the corresponding IIROC Dealer Member Rules affected by the IIROC 2014 CRM2 Amendments:

2.6 The IIROC 2014 CRM2 Amendments are materially harmonized with the CSA 2014 CRM2 Amendments.

Part 3 Decision

3.1 The following sections of NI 31-103 do not apply to any registered firm that is a member of IIROC if the registered firm complies with the corresponding IIROC 2014 CRM2 Amendments:

(a) paragraph 14.2(2)(m);

(b) section 14.2.1; and

(c) paragraphs 14.12(1)(b.1) and (c.1)

Part 4 Effective Date

4.1 This decision comes into effect on July 15, 2014 and expires on the date on which amendments to Part 9 of NI 31-103 and Appendix G of NI 31-103 come into force providing an equivalent exemption for IIROC members.

Dated at Charlottetown, Prince Edward Island, this 29th day of May, 2014.