31-519 (Blanket Order) - MFDA 2014 CRM2 Amendments

Securities Act
R.S.P.E.I. 1988, Cap.-S-3.1

Document Type: Blanket Order
Document No.: 31-519
Subject: MFDA 2014 CRM2 Amendments
Effective Date: July 15, 2014

Blanket Order 31-519

MFDA 2014 CRM2 Amendments

Part 1 Definitions

1.1 Unless otherwise defined in this decision or the context otherwise requires, terms used in this decision that are defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations or National Instrument 14-101 Definitions have the same meaning in this Blanket Order.

Part 2 Background

2.1 Under section 9.4 [exemptions from certain requirements for MFDA members] of NI 31-103, a registered firm that is a member of MFDA is exempt from certain requirements in NI 31-103 if the registered firm complies with the corresponding MFDA Provisions that are in effect.  The term “MFDA Provision” is defined in section 1.1 of NI 31-103 to mean “a by-law, rule, regulation or policy of MFDA named in Appendix H, as amended from time to time”.

2.2 On July 15, 2014, the following provisions of NI 31-103 will come into effect:

(a) paragraph 14.2(2)(m) [relationship disclosure information]; and

(b) section 14.2.1 [pre-trade disclosure of charges] (paragraphs (a) and (b) together, the CSA 2014 CRM2 Amendments).

2.3 On July 15, 2014, certain MFDA Rules in relation to the implementation of Client Relationship Model – Phase 2 (the MFDA 2014 CRM2 Amendments) will come into effect.

2.4 MFDA Rules affected by the MFDA 2014 CRM2 Amendments are not reflected in Appendix H of NI 31-103.

2.5 The following table sets out the relevant NI 31-103 sections of the CSA 2014 CRM2 Amendments and the corresponding MFDA Rules affected by the MFDA CRM2 Amendments:

2.6 The MFDA 2014 CRM2 Amendments are materially harmonized with the CSA 2014 CRM2 Amendments.

Part 3 Decision

3.1 The following sections of NI 31-103 do not apply to any registered firm that is a member of MFDA if the registered firm complies with the corresponding MFDA 2014 CRM2 Amendments:

(a) paragraph 14.2(2)(m); and

(b) section 14.2.1.

Part 4 Effective Date

4.1 This decision comes into effect on July 15, 2014 and expires on the date on which amendments to Part 9 of NI 31-103 and Appendix H of NI 31-103 come into force providing an equivalent exemption for MFDA members.

Dated at Charlottetown, Prince Edward Island, this 29th day of May, 2014.