Category: News

AUM Law Team Member Announcements

We are delighted to welcome Vivek (Vik) Bali as Legal Counsel to AUM Law. Vik’s practice will focus on regulatory compliance. Before joining AUM Law, Vik articled and then worked in the KYC, Compliance and AML spheres at UBS Bank (Canada). Vik graduated from Osgoode Hall Law School in 2019. Before heading to law school, he earned a B.Sc. in Biochemistry from York University.

We are also thrilled to welcome Ayn Greaves as a Compliance Consultant at the firm. In her role, Ayn will be assisting our clients to navigate the complicated regulatory environment, including helping lawyers complete audits, questionnaires, AML reviews, policies and procedures reviews, and advising on risks. Prior to joining AUM Law, Ayn started her financial services career at IIROC, and since then has worked in various investment advisory, wealth management and banking firms, most recently as a Senior Manager in Regulatory Compliance at President’s Choice Bank. Ayn holds the Certification in Risk Management Assurance (CRMA) Designation.

March 31, 2022

BLG’s Resource Corner

Our colleagues at BLG have written the following articles we thought might interest our readers:

For more information, please visit the BLG website.

February 28, 2022

Canadian Legal Lexpert Directory

We would like to congratulate our very own Kim Poster on the achievement of being included in the 2022 Edition of the Canadian Legal Lexpert® Directory for the practice area of Investment Funds.

February 28, 2022

AUM Law Team Member Announcements

We are delighted to announce that Chris Tooley has been promoted to Senior Legal Counsel at AUM Law. We have benefited greatly from his practical and thoughtful advice since he joined us in 2015. Chris assists firms to become registered advisers, dealers and investment fund managers, and advises existing registrants regularly with respect to AML and other compliance matters.

February 28, 2022

Wrapped, Tied and Tangled – OSC Consultation on Tied Selling and Other Anti-Competitive Practices in the Capital Markets

On November 19, 2021, the Honourable Peter Bethlenfalvy, Minister of Finance of Ontario, requested that the Ontario Securities Commission (the OSC) undertake an analysis of questions regarding the practice of tied selling raised by the Capital Markets Modernization Taskforce (the Taskforce) in their consultation in 2020.  In response, on November 30, the OSC issued OSC Staff Notice 33-753 OSC Consultation on Tied Selling and other Anti-Competitive Practices in the Capital Markets (the Notice).

The Notice requested submissions and supporting evidence and analysis from issuers, dealers and other market participants as well as from investors and other stakeholders in order to establish the extent to which tied selling may be impeding competition. More specifically, the Taskforce identified concerns that certain commercial lenders might be engaging in practices that impede competition such as where a lender requires issuer clients to retain the services of a dealer or adviser affiliate of the lender for their capital raising and/or advisory needs as a condition of entering into a commercial transaction, or vice versa.

The Notice included a series of specific questions that the OSC would like feedback on from academic and regulatory experts and professional advisors. The OSC asked to receive submissions in response to the Notice by January 10, 2022. The OSC then plans to incorporate the submissions in its report to the Minister by February 28.

January 29, 2021

BLG’s Resource Corner

Our colleagues at BLG have written a number of articles we thought might interest our readers, including the following:

For more information, please visit the BLG website.

January 31, 2022

Exempt Trade Reports for Funds Due in January – Don’t Delay; Prepare to File Today

National Instrument 45-106 – Prospectus Exemptions (NI 45-106) exempts certain distributions of securities from the prospectus requirements. However, reliance on many of these exemptions requires issuers to report prospectus-exempt distributions to every securities regulator where a distribution of securities was made to a resident in that province. Generally, the deadline for issuers to file a completed Form 45-106F1 Report of Exempt Distribution (Form 45-106F1) is ten days after the date of distribution. However, issuers that are investment funds can opt to file their Form 45-106F1 once yearly by January 30 for distributions made in the preceding calendar year, provided the distributions were made in reliance on any of the following prospectus exemptions:

  • Accredited investor;
  • Minimum investment of $150,000; and
  • Additional investment in investment fund units.

Form 45-106F1 must be filed electronically as follows:

  • In British Columbia, through the online eServices portal of the BCSC;
  • In Ontario, through the online Electronic Filing Portal of the OSC; and
  • In all other jurisdictions, through SEDAR.

Profiles must be set up on both the BCSC online eServices portal and on SEDAR prior to the filings being made.

Securities regulators charge separate filing fees for Form 45-106F1. In B.C. and Ontario, fees are paid online when the form is submitted, while filing fees payable to other jurisdictions must be made through SEDAR.

A brief reminder that securities regulators have a different approach when sales of securities are made to managed accounts (i.e. to discretionary portfolio managers), as follows:

  • In Manitoba and Québec, the Form 45-106F1 may be required to be filed and fees paid with respect to beneficial owners of securities, regardless of the location of the managed account (note as well that fees in Québec are based on the gross value of securities distributed in the Province);
  • In other jurisdictions (including Saskatchewan through blanket relief), the Form 45-106F1 would generally be filed (and fees paid) based on the location of the discretionary adviser/managed account.

We would be pleased to assist our clients with investment funds prepare and file the required Form 45-106F1 for 2021 distributions by the January 30, 2022 deadline. We would strongly encourage clients to begin this process soon, or as early as possible in the new year, to avoid a potential late filing, as the process can be time consuming. There is typically a last-minute “filing crunch” towards the end of January, which can lead to a missed deadline.

November 30, 2021

BLG Webinar November

On November 18, Richard Roskies will be speaking alongside BLG lawyers at the BLG’s Investment Management webinar, for which you will have received an invitation. Topics discussed will include regulatory developments relating to digital assets, investment fund prospectus disclosure, enhancements to IRC duties, regulatory burden reduction efforts, financial exploitation and vulnerable clients, and of course the client-focused reforms. Please contact us with any questions and we hope to see you there.

BLG’s Resource Corner

Our colleagues at BLG have written a number of articles we thought might interest our readers, including the following:

For more information, please visit the BLG website.

October 29, 2021