CSA Finalizes Amendments To Protect Older And Vulnerable Clients

On July 15, 2021, the Canadian Securities Administrators (CSA) published final amendments (Amendments) to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations and Companion Policy 31-103 (Policy). The Amendments will come into force on December 31, 2021.

The Amendments aim to protect the older and the vulnerable from financial exploitation and diminishing mental capacity by introducing new definitions and requirements:

• Trusted Contact Person (TCP): The registrant must take reasonable steps to obtain from the client the name and contact information of a TCP that the registrant can reach out to on the client's behalf about potential financial exploitation, diminishing mental capacity or further contact information. This is a new Know Your Client (KYC) step.