Canadian securities regulators seek input on proposed business conduct rules for derivatives dealers and advisers

TORONTO and MONTREAL, April 4, 2017 /CNW Telbec/ - The Canadian Securities Administrators (CSA) today published for comment Proposed National Instrument 93-101 Derivatives: Business Conduct and a related proposed companion policy. The proposed instrument establishes an investor protection regime for over-the-counter (OTC) derivatives markets that is consistent with international standards and foreign requirements and is intended to create a uniform approach to derivatives business conduct regulation in Canada.

"This is an important milestone for Canada in the regulation of over-the-counter derivatives," said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. "The proposed business conduct regime will protect investors, improve transparency and accountability, and protect against market abuse."

The proposed instrument sets out fundamental obligations for OTC derivatives dealers and advisers. These include a fair dealing model suitable for derivatives markets that contains obligations to identify and respond to conflicts of interest; know-your-derivatives party obligations; and compliance and recordkeeping requirements.

For derivatives dealers and advisers working with non-institutional counterparties, the proposed instrument introduces further measures such as a derivatives-specific suitability standard, the requirement to identify derivatives party-specific needs, and disclosure regarding leverage.

As a significant proportion of OTC derivatives trading is cross-border, the proposed instrument includes exemptions for foreign derivatives dealers and advisers that are subject to and comply with comparable laws of certain foreign jurisdictions.

The CSA is also in the process of developing a registration regime for derivatives dealers and advisers. The CSA anticipates publishing proposed NI 93-102 Derivatives: Registration shortly. An extended comment period (150 days) is in effect for the proposed business conduct regime to provide stakeholders an opportunity to consider it in conjunction with the proposed registration regime.

The proposed instrument and companion policy can be found on CSA members' websites.

The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

 

For more information:                                                                                                                     



Kristen Rose                                     

Sylvain Théberge

Ontario Securities Commission                       

Autorité des marchés financiers

416-593-2336                                          

514-940-2176 



Alison Walker                                        

Nicole Tuncay

British Columbia Securities Commission         

Alberta Securities Commission

604-899-6713                                             

403-297-4008



Jason (Jay) Booth                                    

Andrew Nicholson

Manitoba Securities Commission            

Financial and Consumer Services

204-945-1660                                          

Commission, New Brunswick


506-658-3021



Jane Anderson                                       

Janice Callbeck          

Nova Scotia Securities Commission                

Office of the Superintendent of Securities    

902-424-0179                                             

P.E.I.


902-368-6288 



John O'Brien                                            

Rhonda Horte

Office of the Superintendent of Securities        

Office of the Yukon Superintendent of

Newfoundland and Labrador                           

Securities        

709-729-4909                                           

867-667-5466



Jeff Mason                                           

Tom Hall

Nunavut Securities Office                            

Office of the Superintendent of Securities

867-975-6591                                               

Northwest Territories


867-767-9305



Shannon McMillan 


Financial and Consumer Affairs  


Authority of Saskatchewan    


306-798-4160 


 

SOURCE Autorité des marchés financiers

For further information: Kristen Rose, Ontario Securities Commission, 416-593-2336; Sylvain Théberge, Autorité des marchés financiers, 514-940-2176; Alison Walker, British Columbia Securities Commission, 604-899-6713; Nicole Tuncay, Alberta Securities Commission, 403-297-4008; Jason (Jay) Booth, Manitoba Securities Commission, 204-945-1660; Andrew Nicholson, Financial and Consumer Services Commission, New Brunswick, 506-658-3021; Jane Anderson, Nova Scotia Securities Commission, 902-424-0179; Janice Callbeck, Office of the Superintendent of Securities, P.E.I., 902-368-6288; John O'Brien, Office of the Superintendent of Securities, Newfoundland and Labrador, 709-729-4909; Rhonda Horte, Office of the Yukon Superintendent of Securities, 867-667-5466; Jeff Mason, Nunavut Securities Office, 867-975-6591; Tom Hall, Office of the Superintendent of Securities, Northwest Territories, 867-767-9305; Shannon McMillan, Financial and Consumer Affairs, Authority of Saskatchewan, 306-798-4160

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