CSA provide specified relief from CRM2 requirements

May 21, 2015

On May 21, 2015, the Canadian Securities Administrators issued a staff notice advising that all CSA member provinces have issued parallel orders providing relief from certain amendments related to the implementation of CRM2.

The parallel orders have three important consequences.  First, for firms that are not members of self-regulatory organizations (SROs), the parallel orders confirm that the CRM2 requirements relating to market value, position cost, account statements, additional statements, scholarship plan dealer statements and security holder statements that were to come into effect on July 15, 2015 may now be met starting with statements delivered for the period ending December 31, 2015.  This order codifies relief that was previously announced by the CSA in January.

Second, members of a SRO are granted relief from complying with the CRM2 amendments expected to be implemented in 2015 and 2016, if they comply with the corresponding provisions enacted by their respective SROs.  The Investment Industry Regulatory Organization of Canada and the Mutual Fund Dealers Association of Canada have adopted amendments to their rules to implement the 2015 and 2016 CRM2 amendments. 

Finally, the parallel orders also provide specified relief from certain technical client reporting obligations such as the requirement to identify securities that may be covered under an investor protection fund in additional statements and the requirement that investment performance reports include market value information and annualized total percentage return information.

For further information, see CSA Staff Notice 31-341.

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