The Canadian Securities Administrators (CSA) has published proposed amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) (the Proposed Amendments) as well as proposed changes to Companion Policy 31-103CP Registration Requirements, Exemptions and Ongoing Registrant Obligations (31-103CP) (the Proposed Changes) for a 90-day comment period ending February 28, 2024.
The Proposed Changes and Proposed Amendments set out a new regulatory framework (the Proposed Framework) under which a not-for-profit independent dispute resolution service (IDRS) has been designated or recognized by CSA jurisdictions and would have the authority to issue decisions that would be both final and binding.
Currently, under NI 31-103, the Ombudsman for Banking Services and Investments (OBSI) acts as an independent service tasked with dispute resolution; however, the OBSI lacks the authority to make binding decisions. If implemented, The Proposed Amendments would modify the complaint-handling process and require that firms comply with a final decision of the IDRS.
The British Columbia Securities Commission (BCSC) supports the outcomes intended by this project but is not participating in the proposal for comment on the rule amendments. British Columbia is considering legislative changes that may achieve the same outcomes as those intended by the proposed framework.
The proposed amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) and the proposed changes to Companion Policy 31-103CP Registration Requirements, Exemptions and Ongoing Registrant Obligations (31-103CP) are available for download from websites of participating CSA jurisdictions.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.
