Proposals aim to provide greater clarity and reduce errors without sacrificing watchdogs' ability to protect investors
As part of a continuing effort toward regulatory burden reduction, the Canadian Securities Administrators (CSA) is seeking to make targeted changes aimed at providing greater clarity to registered firms and individuals on the information they must submit, while also improving the quality of information submitted to regulators.
“We heard from our stakeholders that certain registration information they provide can be disproportionately burdensome, and that other registration information requirements could be clearer,” Louis Morisset, CSA chair and president and CEO of the Autorité des marchés financiers, said in a statement.
“These proposals are intended to modernize the registration information framework and provide greater clarity to registrants, while still allowing the CSA to receive the information necessary to carry out its regulatory role and protect investors,” Morisset said.
Among its proposed changes to National Instrument 33-109 Registration Requirements, the CSA is suggesting changes to how registrants report outside activities, and how firms manage such activities. Aside from outlining categories of outside activities registrants must report on to regulators, the changes codify existing requirements with respect to the oversight of outside activities that are positions of influence.
To minimize duplicate filings, the proposed changes include altering the manner of regulatory disclosure for certain required information. The frequency of common errors seen on forms are also anticipated to be reduced by clearer information on what information must be reported.
The regulators are also considering changes to reporting deadlines, including lengthening the timeframe within which registrants must update certain registration information.
The amendments are not intended to change the nature of the registration process, the requirement to register, or the assessment of suitability for registration.
The CSA is inviting stakeholders to provide written comments by May 5, 2021.
