CIBC has been given regulatory relief that will ease the winding up of its CIBC Financial Planning Inc. subsidiary, and its integration into CIBC Investor Services Inc.

The firms applied to the regulators for relief from certain filing requirements allowing it to transfer reps from CFPI to CISI in bulk. Both CFPI and CISI provide full-service brokerage services. CISI also provides discount brokerage services through its Investors Edge division. CIBC directly holds 100% of the shares of both firms.

Under a reorganization to be completed by the end of the year. CIBC and CISI will enter into a share purchase agreement that will see CISI purchase all of the outstanding shares of CFPI from CIBC in exchange for common shares of CISI of equivalent value; and, CFPI will be voluntarily wound up by CISI as its new sole shareholder.

The decision granting relief notes, “ Given the approximately 126 business locations and approximately 130 representatives of CFPI, it would be very difficult and time-consuming to transfer each individual to CISI, [under the requirements set out in the securities rules].”

The rules provide that if a registered firm is acquiring a large number of business locations (for example, as a result of an amalgamation or asset purchase) from registered firms that are located in the same jurisdictions and registered in the same categories as the acquiring firm, and if a significant number of individuals are associated on the National Registration Database with the locations, the securities regulatory authority or regulator will consider exempting the firms and individuals involved in the transaction from certain filing requirements.

The Ontario Securities Commission agreed, granting the relief.