Notice 2004-002 - Dealer Registration Requirement
Notices
Notice 2004-002 - Dealer Registration Requirement
March 01, 2004
REGISTRATION REQUIREMENTS FOR CNQ DEALERS AND APPROVED TRADERS AND APPEALS OF CNQ DECISIONS
The Ontario Securities Commission has approved amendments to the CNQ Rules removing the requirement that CNQ Dealers and Approved Traders be Ontario registrants and removing the description of appeal rights to securities commissions. The amendments are attached to this notice as Appendix �A.� The amendments will become effective immediately.
The amendments were published for notice and comment in CNQ Notice 2003-010 dated November 21, 2003. No comments were received.
Registration Requirements
CNQ rules previously required both CNQ Dealers and Approved Traders to be Ontario registrants as a condition of approval. This had constituted a barrier to access as some out-of-province traders are reluctant to seek Ontario registration where it would not otherwise be required. As applicable securities legislation sets out registration requirements based on activities conducted by the firm or the trader within the jurisdiction, it is not necessary for CNQ to set additional requirements.
The amendment removes the requirement that CNQ Dealers and Approved Traders be Ontario Registrants. However, under applicable securities law, the firms and traders must be registered with a Canadian securities regulatory authority and must maintain that registration in good standing. Firms and traders will continue to have the responsibility for ensuring they have all necessary registrations, including Ontario registrations if applicable, for the business they are undertaking.
Appeal Rights
The rules previously stated that appeals of CNQ decisions may be brought to the Ontario Securities Commission. Some securities commissions take the view that appeal rights to those commissions may also exist under their legislation. As the appeal rights arise under applicable securities law and not by virtue of CNQ rules, reference to them in CNQ rules is unnecessary and may be confusing. Existing rights of appeal are not affected by the change.
APPENDIX �A�
Be it resolved that:
1. Rule 1-105(2) is repealed.
2. Rule 2-101(a) is amended by deleting the words �an Ontario registrant and�.
3. Rule 4-101(1) is amended by deleting the words �is an Ontario registrant and�.
4. Rule 4-101(2) is repealed and replaced with the following:
�A CNQ Dealer shall ensure that each person entering orders on the CNQ System has all necessary registrations under applicable securities legislation and is trained in and understands these rules.�
5. Section 5.3 of Policy 1 is repealed.
Passed and enacted this 5th day of November, 2003 to become effective upon Ontario Securities Commission approval following public notice and comment.
�Ian Bandeen�
Chairman
�Timothy Baikie�
Secretary
REGISTRATION REQUIREMENTS FOR CNQ DEALERS AND APPROVED TRADERS AND APPEALS OF CNQ DECISIONS
The Ontario Securities Commission has approved amendments to the CNQ Rules removing the requirement that CNQ Dealers and Approved Traders be Ontario registrants and removing the description of appeal rights to securities commissions. The amendments are attached to this notice as Appendix �A.� The amendments will become effective immediately.
The amendments were published for notice and comment in CNQ Notice 2003-010 dated November 21, 2003. No comments were received.
Registration Requirements
CNQ rules previously required both CNQ Dealers and Approved Traders to be Ontario registrants as a condition of approval. This had constituted a barrier to access as some out-of-province traders are reluctant to seek Ontario registration where it would not otherwise be required. As applicable securities legislation sets out registration requirements based on activities conducted by the firm or the trader within the jurisdiction, it is not necessary for CNQ to set additional requirements.
The amendment removes the requirement that CNQ Dealers and Approved Traders be Ontario Registrants. However, under applicable securities law, the firms and traders must be registered with a Canadian securities regulatory authority and must maintain that registration in good standing. Firms and traders will continue to have the responsibility for ensuring they have all necessary registrations, including Ontario registrations if applicable, for the business they are undertaking.
Appeal Rights
The rules previously stated that appeals of CNQ decisions may be brought to the Ontario Securities Commission. Some securities commissions take the view that appeal rights to those commissions may also exist under their legislation. As the appeal rights arise under applicable securities law and not by virtue of CNQ rules, reference to them in CNQ rules is unnecessary and may be confusing. Existing rights of appeal are not affected by the change.
APPENDIX �A�
Be it resolved that:
1. Rule 1-105(2) is repealed.
2. Rule 2-101(a) is amended by deleting the words �an Ontario registrant and�.
3. Rule 4-101(1) is amended by deleting the words �is an Ontario registrant and�.
4. Rule 4-101(2) is repealed and replaced with the following:
�A CNQ Dealer shall ensure that each person entering orders on the CNQ System has all necessary registrations under applicable securities legislation and is trained in and understands these rules.�
5. Section 5.3 of Policy 1 is repealed.
Passed and enacted this 5th day of November, 2003 to become effective upon Ontario Securities Commission approval following public notice and comment.
�Ian Bandeen�
Chairman
�Timothy Baikie�
Secretary
