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CSA Announces Limited Extension for Certain CRM 2 Requirements for Dealers and Advisers

In an announcement made yesterday by Bill Rice, Chair of the Canadian Securities Administrators (CSA), the CSA has decided:

  • The July 15, 2015 requirements applicable to registered dealers and advisers will be delayed until December 31, 2015. This means that the new disclosure requirements required in quarterly account statements (or monthly in certain prescribed circumstances) including position cost information will come into force at the end of this year.
  • There will be no changes to the requirement to provide cost disclosure and performance reporting information to investors as in effect on July 15, 2016.
  • For firms that will report performance for the calendar year 2016, there will be no requirement to include comparative data from 2015 in their investment performance reports. They will be able to base their first investment performance reports on 2016 information alone.
  • There will be no change to the definition of “book cost” despite recent industry concerns. Firms that wish to provide tax-adjusted cost information to their clients can do so as supplementary information, affirming that the definition of “book cost” will not change and will remain as currently reflected in CRM 2 rules.
  • The announcement came as a response to a request made by the Investment Industry Association of Canada (IIAC) to modify certain dates associated with the CRM2 initiative to allow dealers more time for implementation and testing.  The CSA has noted that they will be preparing the necessary instruments to give effect to these decisions in the near term.

This article contains general information only and is not intended to provide a legal opinion or advice. Please consult a lawyer or compliance advisor for matters related to your situation before relying on any of the statements made in this article.