CSA publishes proposed new rules for derivatives dealers and advisers

By The IJ Staff | April 06 2017 11:30AM

Photo: Freepik

The Canadian Securities Administrators (CSA) published Proposed National Instrument 93-101 Derivatives: Business Conduct for comment this week, as well as a related proposed companion policy.

The proposed instrument aims to establish an investor protection regime for over-the-counter (OTC) derivatives markets consistent with international regulations and is intended to create a uniform approach to business conduct across the country.

An important milestone

"This is an important milestone for Canada in the regulation of over-the-counter derivatives," says Louis Morisset, CSA Chair and President and CEO of Quebec regulator, the Autorité des marchés financiers. "The proposed business conduct regime will protect investors, improve transparency and accountability, and protect against market abuse."

The proposed instrument sets out obligations for OTC derivatives dealers and advisors, including a fair dealing model that contains the obligation to identify and respond to conflict of interests; know-your-derivatives party obligations; and compliance and compliance and record-keeping requirements.

Registration regime for dealers and advisers

The CSA is also developing a registration regime for derivatives dealers and advisers. The CSA expects to soon publish proposed NI 93-102 Derivatives: Registration shortly.

A comment period of 150 days is in effect for the proposed business conduct regime. The proposed instrument and companion policy can be found on CSA members' websites.