The Canadian Securities Administrators (CSA) have published proposals to streamline the process for dealer and advisor registration in multiple jurisdictions.

The proposals, which were released on Friday, include rule and policy amendments by CSA members in passport jurisdictions (every jurisdiction except Ontario) to extend the second phase of passport to registration. They also include a new proposed national policy, setting out the processes for registration in multiple jurisdictions for adoption by all CSA members, that will replace and streamline the current National Registration System and establishes the process for obtaining registration in multiple jurisdictions, including Ontario.

The proposed amendments are expected to be adopted concurrently with the proposed registration reform, which would harmonize and streamline the registration regime. The CSA expects to implement that reform in the first half of 2009.

The passport regulators say they expect that extending the passport for registration will enhance the efficiency of regulation of the capital markets and simplify the use of the regulatory system for registrants. “By using the passport tools, we can make more timely decisions and our processes more efficient and seamless for registrants,” they say.

The regulators also say that they did not do a cost-benefit analysis of passport for registration. “We worked with the [Ontario Securities Commission] to develop interfaces for Ontario registrants who want to deal with clients in passport jurisdictions, and for registrants in passport jurisdictions who want to deal with clients in Ontario. The interfaces make the securities regulatory system as efficient and effective as possible in the circumstances for all registrants who want to deal with clients in both passport jurisdictions and Ontario,” they add.

The proposed amendments to extend the passport system to the dealer and adviser community are the last step in implementing the passport system set out in the memorandum of understanding among the governments that are participating in the system. It will allow someone to clear a prospectus, obtain a discretionary exemption or register in the home province and have that clearance, exemption or registration apply automatically in all other passport provinces and territories.

“Making the passport system available for the dealer and adviser community will give all market participants faster and simpler access to Canada’s capital markets,” said CSA Chair Jean St-Gelais. “This phase of passport will simplify the regulatory processes and benefit registrants and investors in all provinces and territories.”

The comment period on the amendments is open until September 17, except for the proposal to repeal the NRS, which is open until October 17.