On December 1, 2020 the Ontario Securities Commission (OSC) announced a proposal that would reduce the regulatory burden for international dealers and advisers that provide trading or advisory services to institutional investors in Ontario. The proposal would eliminate the need for these firms to file routine applications for exemptive relief and would enhance institutional investor access to international options and futures markets, thereby reducing regulatory costs for such institutional investors.
Currently, international firms must apply for certain exemptions from registration requirements in the Commodity Futures Act (Ontario). These applications may also include a request to be exempt from certain options proficiency requirements in OSC Rule 91-502 Trades in Recognized Options. The OSC is proposing to codify a standardized set of exemptions, which are subject to standard terms and conditions, from registration and proficiency requirements for international firms that provide trading or advisory services to institutional investors in Ontario.
Under the proposal, applications would continue to be considered on a case-by-case basis only if they raise novel issues, or if applicants indicate that standard terms and conditions are not appropriate for their business model or client base.
Stakeholders are asked to submit comments on the proposal by March 1, 2021.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
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