Canadian Securities Regulators Report On Relationship Disclosure Practices

A recent targeted review by the Canadian Securities Administrators (CSA) of the relationship disclosure practices of 124 registered portfolio managers and exempt market dealers revealed a number of common deficiencies, and some best practices, as set out in CSA Staff Notice 31-334 available here.

The Notice was published shortly after the first effective date – July 15, 2013 – of the CSA's new client relationship disclosure and reporting requirements (CRM-2) amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations

(NI 31-103). For details of the CRM-2 amendments and applicable transition periods see BLG's Investment Management Bulletin Canadian Securities Administrators Finalize Rules Requiring Enhanced Account Level Disclosure by Registrants: Effective July 15, 2013 available here.