CSA Adopting Client Reporting Requirements

The Canadian Securities Administrators today announced the adoption of amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations and its Companion Policy that set out requirements for, among other things, client reporting with respect to cost disclosure, investment performance reporting and client statements. As we discussed in an earlier post, the CSA published its initial proposal, which forms part of their Client Relationship Model Project, in June 2011, with revised proposals released in June 2012.

Among other things, the amendments will expand client statements to include additional information, set out a methodology for registrants to use to determine the market value of securities in client reports and require the disclose to clients of such things as the amount of trailing commissions received by a registered firm.