CSA Seeks To Strengthen Fund Registration Regime

by Glen Shapiro, LawAndTax-News.com, New York

22 February 2007

The Canadian Securities Administrators (CSA) announced on Tuesday that they are seeking comments on proposed National Instrument 31-103 Registration Requirements.

The proposed Rule will strengthen the registration regime by harmonizing, streamlining and modernizing the current registration requirements in all 13 CSA jurisdictions, and according to reports, is likely to result in hedge fund managers being obliged to register with securities regulators, undergo testing to ensure their ability to manage the funds, and consent to background checks.

The CSA simply states that:

"The proposed Rule harmonizes registration requirements that exist in various acts, rules, regulations, notices and practices across the CSA jurisdictions into a single national instrument. It also significantly reduces the number of registration categories for firms and individuals."

Comment is invited on Proposed National Instrument 31-103 Registration Requirements, the proposed Companion Policy and the CSA Notice until June 20, 2007.

The CSA also plans to host a series of stakeholder meetings across the country during the comment period to ensure stakeholders have an adequate understanding of the proposed Rule and have another opportunity to provide feedback.

In addition to this, regional consultations may also be held with key stakeholders to collect additional feedback and to ensure proper understanding of the proposed rule.

Speaking to Bloomberg in a telephone interview this week, Ontario Securities Commission Chairman David Wilson observed that:

"It's a big step in the long process of greater harmonization across the country. To have it all under one umbrella, one set of rules, right from coast to coast. There's the big picture. It's the first time ever."

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