CSA Publishes Reforms To Enhance Client-Registrant Relationship And Policy On Embedded Commissions

The Canadian Securities Administrators (CSA) recently released two highly anticipated notices related to CSA's investor protection initiatives. The proposals are the result of a lengthy consultation process and aim to better align the interests of registrants with the interest of their clients, improve outcomes for clients and clarify to clients the nature and the terms of their relationships with registrants.

The first notice is a request for comment with respect to numerous proposed reforms to the registrant conduct provisions outlined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) (Proposed Amendments). The overarching principle of the Proposed Amendments is the requirement for registrants to promote the best interest of clients and put clients' interest first, including with respect to conflicts of interest and suitability determination. The Proposed Amendments would also enhance registrants'