Giving the Green Light to ESG Disclosure – CFA Institute Publishes Draft ESG Disclosure Standards for Investment Products
Social Media and Market Manipulation
MFDA’s Initiative on Improving Client Account Transfers – Will CSA Follow Suit?
Outside Business Activities (OBAs) Reporting Reminder
What Comes Next: KYC, KYP and Suitability
Reforms in Even Sharper Focus – IIROC and MFDA Publish Draft CFR Guidance
Important Reminders: AODA’s June 30 Compliance Report Deadline
In Brief: Proposed Amendments to Regulatory Functions of the Bourse de Montreal Inc. ▪ Changes to AML Rules – Effective on June 1, 2021 ▪ Start-Up Crowdfunding Exemptions are Revved up and Ready to Go ▪ Hello, Goodbye – CSA Grants Interim Relief for DSC Sales ▪ New Brunswick Proposes Local Rule Impacting Funds in that Province
FAQ Corner: Non-Qualified Syndicated Mortgage Investments (NQSMIs) by FSRA and the OSC, What Should Firms Operating in this Space Keep in Mind? ▪ What Procedures are Required Before My Firm Can Accept Referred Business from a Third-Party? ▪ Does Claiming Compliance with GIPS Standards Require Third-Party Verification?
Titles, Titles and More Titles – Notice of Changes and Request for Further Comment on Financial Professionals Title Protection Rule
Important Reminders: CFR Requirements Reminder ▪ Investment Fund Managers (IFM) Form Deadlines
In Brief: CSA Proposed Amendments to Designated Benchmarks and Benchmark Administrators ▪ CSA Proposed Amendments to NI 14-101 Definitions and Consequential Amendments ▪ IIROC Seeks Expert Views on Its Proposed IIROC Expert Investor Issues Panel ▪ A Summer for Consideration – CSA Proposes Amendments to Continuous Disclosure Obligations and Semi-Annual Reporting for Venture Issuers ▪ To Promote or Not to Promote – Proposed New Disclosure Requirements in BC ▪ Sixth Year Review of Women on Boards and in Executive Officer Positions
FAQ Corner: Can a Registrant Act as a Trustee, Executor, or Under a POA for a Client? When Are Such Activities Reportable as an OBA? ▪ How Often Should a Registered Firm Conduct Ongoing Monitoring of Their Clients’ Accounts for the Purposes of Complying with Their Anti-Money Laundering (AML) Requirements?
BLG’s Resource Corner: BLG’s Client Focused Reforms Communication Series Surging through 2021 to 2022 and More
News: Lexology Awards ▪ AUM Law Presented at PMAC Conference ▪ AUM Law Speaks at Compliance Officers’ Network
Deal Provides Investment Industry with Flexible, Innovative Approach to ManageRisk
Toronto, ON – May 6, 2021– AUM Law today announced the acquisition of our firm by Borden Ladner Gervais LLP (BLG). The transaction combines BLG’s deep expertise and long-standing counsel in the investment management industry with AUM Law’s fixed-fee regulatory compliance offerings, providing clients with an efficient, innovative approach to help them manage a wide array of legal and regulatory compliance obligations. Financial terms of the transaction were not disclosed.
“Our clients rely on us to stay ahead of change and help them navigate the complex business landscape,” said John Murphy, National Managing Partner and CEO, BLG. “This acquisition, which is the first of note in our sector in several years, is evidence of our commitment to embrace innovation to transform the practice of law and bring new services to our clients as quickly as possible.”
BLG’s investment in AUM Law will allow the firm to expand and automate its regulatory compliance services to clients across Canada as part of the BLG Beyond portfolio of alternative legal services. With over 60 years of experience through lawyers located in all offices across Canada, BLG’s Investment Management Group holds the number one place in Chambers Canada’s legal rankings and is the largest practice group focusing exclusively on the investment management industry in Canada. Established in 2009 to coincide with the introduction and roll-out by the Canadian Securities Administrators of the new cross-Canada registration regime, AUM Law has developed a systematic, predictable approach to regulatory compliance and general counsel requirements, as well as one-off fixed fee services and modules.
“Since inception, we have developed strong client relationships while developing our model to proactively support our clients with managing risk and compliance in a rapidly changing environment,” said Kevin Cohen, President, AUM Law. “This is an opportunity to expand our platform across Canada and bring our alternative legal services model to new clients as part of BLG, attract the finest talent to our team, and leverage BLG’s investment in technology to further enhance the client experience. It’s an exciting moment for our firm, our people and our clients.
FINTRAC Publishes Guidance on Politically Exposed Persons and Heads of International Organizations
ASC Notice and Request for Comment re Blanket Order 31-536 Alberta Small Business Finder’s Exemption
CSA Multilateral Notice and Request for Comment re Proposed Order 45-539 Small Business Financing
CSA Publishes Guidance on Crypto-Asset Trading Platforms
In Brief: Alberta and Saskatchewan Adopt Self-Certified Investor Prospectus Exemption ▪ FSRA Publishes First Quarterly Report Scorecard on Service Standards ▪ Expansion of Ontario Securities Commission’s Mandate ▪ Lawsuit Against Ontario Securities Commission Can Proceed ▪ Disclosure Expectations for Crypto Asset Reporting Issuers ▪ Regulatory Penalties in British Columbia Not Discharged Through Bankruptcy ▪ Alberta Eliminates Director Residency Requirements
Industry participants are re-thinking their business operations as a result of mortgage lenders no longer being able to operate outside of a securities law regime as of March 1, 2021. Many lenders that previously qualified investors on a deal by deal basis in order to avoid having to become registered are now establishing pooled funds to ease the management of a growing investor base and to better compete on investments where other lenders are ready to commit without needing to syndicate a deal. One of the more popular pooled vehicle structures that is being turned to is the mortgage investment corporation (MIC).
In this publication we discuss what to keep in mind when structuring a MIC, such as dealer registration and other obligations, as well as the evolving regulatory framework for syndicated mortgage investments (SMIs).
On February 4, 2021, the Canadian Securities Administrators (CSA) published for comment Proposed Amendments to NI 33-109 and Related Instruments – Modernizing Registration Information Requirements, Clarifying Outside Activity Reporting & Updating Filing Deadlines (Proposals). The Proposals are generally intended to provide greater clarity on the information to be submitted as part of the registration process and to reduce the regulatory burden for individuals and firms (Regulated Persons), while at the same time allowing the members of the CSA to receive information necessary to carry out their regulatory roles.
The Proposals are divided into six broad areas, each of which is discussed in some detail in our publication.
Interview with Richard Roskies regarding Client Focused Reforms and Know-Your-Product Provisions
Outside Activities 2.0: Potential Burden Reduction Comes to Reporting of Registrant Information
FAQ Corner: Activities 2.0: Potential Burden Reduction Comes to Reporting of Registrant Information
In Brief: CSA to Release Recommendations on SRO Framework ▪ Some Provincial Regulators Say Modernization Task Reforms Could Hurt Harmonization ▪ British Columbia Securities Commission to Contact Clients Directly
Ontario’s Capital Markets Modernization Taskforce Releases Final Report
CSA Publishes More FAQ Guidance on the Client-Focused Reforms
FINTRAC Updates its Guidance on Conducting AML Risk Assessments
Reviewing Fund Custodian Arrangements
FAQ Corner: Does a pooled fund that invests in an underlying fund require a custodian for the securities of the underlying fund? ▪ Can a portfolio manager or investment fund that is subject to FATCA/CRS due diligence and reporting obligations rely on a dealer or third-party custodian to conduct these activities on its behalf?
In Brief: IOSCO Issues Guidance for Dealing with Aggrieved Investors▪ OSC Issues “Best Practice Guidance” for Prospectus Filings ▪ Regulators Make it Easier for MFDA Reps to Sell Liquid Alt Funds
Reminder! Investment Funds Have till January 30 to File Reports of Exempt Distribution
OSC Seeks Comment on Proposed Priorities for 2021-22
MFDA and IIROC Publish Proposed CFR Rules
Two Western Provinces Consult on Innovative Prospectus Exemption
In Brief: Government Proposing Significant Changes to Federal Privacy Legislation ▪ OSC Proposes Eliminating of Routine Exemptive Relief Applications for International Firms ▪ OSC Research Study Offers Suggestions to get Trusted Contact Person Information from Clients ▪ OSC to Leave Fees Alone for Now ▪ Tipster Trio Shares OSC Whistleblower Payout ▪ FAIR Funding ▪ OSC Publishes Final Amendments Regarding Syndicated Mortgages ▪ Activist Short Selling
Late Breaking News: OSC Publishes Report on Exempt Market Activity ▪ CSA Publishes Guidance on Automatic Securities Disposition Plans
News and Events: AUM Law Participates in CAASA Webinar
CSA Publishes FAQ Guidance on Client-Focused Reforms
OSC’s CRR Branch Publishes Its Annual Report on Registrants
CSA Proposes Changes to Offering Memorandum Prospectus Exemption
CSA Ban on Certain Trailing Commissions to Take Effect in June 2022
CSA Publishes Liquidity Risk Management Guidance for IFMs
Get Your Updated Copy of Mortgage Investment Corporations in a Nutshell
In Brief: FSRA Consults on Service Standards ▪ OSFI Consults on Core Principles for Operational Resilience in a Digital World ▪ FSRA Fines Fortress for Operating without a License
CSA Finalizes Amendments to Syndicated Mortgages Regime, While OSC and FSRA Publish Local Rules and Guidance for Comment
FSRA Consults on Rules and Guidance for the Use of Financial Advisor and Financial Planner Titles
Ontario Consults on on Potential Reforms to Privacy Legislation
CSA Publishes Research Report on How CRM2 Reforms and Mutual Fund Point-of-Sale Rules Have Affected Investor Knowledge, Attitudes and Behaviour
In Brief: CSA Raises the Bar on Threshold for Business Acquisition Reports ▪ SEC’s Risk Alert on COVID-Related Compliance Risks Is Instructive for Canadian Registrants ▪ Wealthsimple to Test Crypto Asset Trading Platform in CSA’s Sandbox ▪ NASAA Task Force Targets COVID-19 Fraudsters
News and Events: PMAC Fall Regulatory and Compliance Webcast – September 24
Ontario’s Capital Markets Modernization Task Force Releases Consultation Report
CSA Publishes Guidance on Flexible CCO Arrangements
Watch Out or Wash Out: Coinsquare Executives Learn That Innovation Isn’t a Free Pass to Violate Securities Laws
FAQ: How does a registered firm’s UDP certify their firm’s RAQ responses if the UDP doesn’t have online access to the survey? ▪ Do registered individuals (and applicants for registration) have to disclose offenses they have been charged with, if the matter hasn’t adjudicated yet?
In Brief: Are You Prepared to Deal with Colleagues Experiencing Diminished Capacity? ▪ OSC Issues Interim Prospectus and Registration Exemptions to Facilitate Crowdfunding
CSA Consults on Potential Reforms to SRO Framework
CSA Members Say They’ve Made It Easier to Register Client Relationship Management Specialists
Federal Court of Appeal Rules on Constitutionality and Application of Canada’s Anti-Spam Legislation
OSC Publishes 2020-2021 Statement of Priorities and 2019-2020 Report Card
IOSCO Consults on Regulatory Measures for Asset Managers’ and Market Intermediaries use of Artificial Intelligence
In Brief: Temporary Relief from Certain Requirements for Registrants and Unregistered Capital Markets Participants Extended ▪ IOSCO Consults on Revised Principles for Outsourcing ▪ CSA Publishes interim Progress Report on Its 2019-2022 Business Plan
News & Events: Correction to Last Month’s Article on PMAC’s Spring Regulatory and Compliance Webcast
OSC Issues Progress Report on Its Burden Reduction Initiatives
OSC Staff Share Compliance Program Updates during PMAC’s Spring Regulatory and Compliance Webcast
FSRA Issues Guidance Concerning Mortgage-Based Investments during Market Disruptions
IIROC Publishes Its Annual Enforcement Report
CSA Renews Exemptive Relief from Filing Deadlines for Investment Funds, Other Issuers, Registrants and Certain Other Capital Markets Participants
FAQ Corner: May an associate advising representative work remotely or in a one-person branch office?
In Brief: OSC Takes Enforcement Action against Representative Who Agreed to Serve as Executor for Client’s Will ▪ Issuers’ Undertakings to ASC Highlight the Importance of Effective Controls to Ensure Compliance with Prospectus Exemptions
News & Events: Updated Real Estate and Mortgage Investment Vehicles Publications ▪ AUM Law Speaks at PMAC Spring Regulatory and Compliance Webcast
