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

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

Related Links

www.lautorite.qc.ca