The Canadian Securities Administrators have published an update regarding their ongoing consultation into the issues of best execution and soft-dollar arrangements.

On February 4, regulators in Ontario, BC, Alberta, Manitoba and Quebec published a concept paper to set out a number of issues related to best execution and soft dollar arrangements for discussion and to obtain feedback. The notice published in today’s OSC bulletin provides an update on the comments received and recent developments.

The CSA received 28 comment letters on the paper. As a result, it has divided the issue into four main areas for further work: a definition of best execution and current requirements; the over-the-counter market; soft dollar arrangements; and, directed brokerage and commission recapture.

“We are in the process of considering current requirements and assessing what, if any, changes are appropriate. Any changes to current requirements will be subject to a public comment process,” the notice says. “We are aiming to publish proposed changes dealing with the definition of best execution and new soft dollar requirements in the first quarter of 2006.”