(June 6 – 17:10 ET) – The Canadian Securities Administrators have published for comment a revised version of its proposed National Instrument regulating commodity pools.
The CSA first proposed the rule back in 1997 and it went through one comment period, generating only one submission. The regulators solicited further comments and have now issued a revised rule based on those further industry submissions.
The proposed National Instrument is intended to regulate publicly-offered commodity pools and to act in conjunction with the mutual fund regulatory regime that took effect on February 1.
The latest version of the proposed rule is a massive overhaul of the initial draft, touching almost every aspect of regulation including the proficiency requirements for both salespersons and supervisors of those selling commodity pools.
The original rule required salespersons to pass the Canadian Futures Examination and their supervisors to pass the Canadian Commodity Supervisors Examination. Since 1997, the Canadian Futures Examination has been split into two parts: the Derivatives Fundamentals Course and the Futures Licensing Course. Regulators now believe the Derivatives Fundamentals Course should be sufficient qualification for both salespersons and supervisors.
Comments are due by August 4.
-James Langton