Exemptions From Derivatives Business Conduct Rule

On July 25, the Canadian Securities Administrators (CSA) announced specific temporary exemptions from various obligations in National Instrument 93-101 Derivatives: Business Conduct (NI 93-101) which comes into force on September 28, 2024. As a reminder, the new rule sets out robust requirements for the business conduct of advisers and dealers who advise or deal in over-the-counter (OTC) derivatives. The rule establishes fundamental obligations that include requirements related to fair dealing, conflicts of interest, suitability, reporting non-compliance, and record-keeping. We remind registrants, including advisers registered under NI 31-103 that advise others on derivatives, that they may require revisions to their policies and procedures, client disclosure and client onboarding documentation prior to September 28, 2024, regardless of the partial exemption available to such advisers.