31-509 (Blanket Order) - Transitional Relief for IIROC Member Firms

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

Document Type: Blanket Order
Document No: 31-509
Subject: Transitional relief from the requirement to provide the relationship disclosure information prescribed by section 14.2(1) of NI 31-103 for IIROC member firms
Effective Date: September 28, 2010  

Blanket Order 31-509

Transitional relief from the requirement to provide the relationship disclosure information prescribed by section 14.2(1) of NI 31-103 for for IIROC member firms

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 and Exemptions (NI 31-103) or National Instrument 14-101 Definitions have the same meaning.

Part 2 Background

2.1  Under section 14.2(1) [Relationship disclosure information] of NI 31-103, a registered firm must deliver to a client all information that a reasonable investor would consider important about the client's relationship with the registrant. 

2.2  Pursuant to section 16.14 of NI 31-103, section 14.2 of NI 31-103 does not apply until September 28, 2010 to a firm that was registered on September 28, 2009.

2.3  IIROC is currently finalizing its proposal on relationship disclosure information ("IIROC CRM proposal"), published on April 9, 2009 in Notice 09-0120 Proposed amendments to the IIROC member rules - Provisions respecting amendments implementation of the Client Relationship Model - Proposed amendments 0 New Rule XXOO - Relationship disclosure.

2.4  The purpose of the IIROC CRM proposal is to set out detailed requirements to assist registered firms who are IIROC members ("Affected Firm") to comply with the general principle in section 14.2(1) of NI 31-103.

2.5  It is anticipated that the IIROC CRM proposal will be finalized and come into force within one year, but not by September 28, 2010.

2.6  Absent relief, Affected Firms could incur unwarranted costs in firm developing detailed relationship disclosure information to comply with section 14.2(1) of NI 31-103 on September 28, 2010 but then potentially having to change that disclosure to comply with the IIROC CRM proposal when it comes into force.

Part 3 Order

3.1  Section 14.2(1) of NI 31-103 does not apply to an Affected Firm until the earlier of September 28, 2011 or the date on which the IIROC CRM proposal comes into force.

Part 4 Effective Date

4.1 This Order will come into effect on September 28, 2010.

Dated at Charlottetown, Prince Edward Island, this 28th day of September, 2010.