Rules Regulating The Use Of Client Brokerage Commissions In Canada To Be Effective June 30, 2010

The Canadian securities administrators (the CSA) recently finalized National Instrument 23-102 Use of Client Brokerage Commissions, along with an accompanying Companion Policy [available here]. Subject to required governmental approvals, National Instrument 23-102 will come into force on June 30, 2010 in all provinces and territories. The coming into force of this Instrument represents the culmination of many years of "soft dollar" policy development in Canada, the most recent round of which commenced in 2005.¹

National Instrument 23-102 will replace guidance on the use of soft dollars adopted in 1986 by the Ontario Securities Commission (OSC Policy Statement 1.9), and later by l'Autorité des marchés financiers in Québec (AMF Policy Statement Q-20). Both policy statements will be rescinded effective on the same date that National Instrument 23-102 comes into force in those provinces.