According to the Investment Dealers Association, on December 5, 1998, the Alberta Securities Commission asked the IDA not to register applicants as Registered Mutual Fund Representatives, although the ASC has granted exemptions in certain circumstances. It now says that based on its experience with those exemptions, the ASC agrees the IDA may now handle all exemption requests.

Exemptions regarding registration as a permanent mutual fund rep are to be made to the IDA along with an explanation as to the reason for such registration. Applicants registered to trade in mutual funds who are transferring to a member firm and who intend on seeking registration as a RR, but currently do not meet the qualifications, may be granted an exemption by the IDA on a number of conditions.

• The applicant completes the CSC and CPH

• He completes the 90-day training program within 4 months of being hired and upgrades to an RR upon completion

• He is restricted to existing clients dealing in mutual funds (during his training period).

Member firms may request consideration for exemptions as reps transition to full RR status. One factor considered will be the type of business the firm conducts. The applicant must already be registered to trade in mutual funds in order to apply for this type of exemption.

Firms are to keep track of the number of their Alberta registrants dealing strictly in mutual funds, whether RMFRs or RRs (restricted to serving existing clients who deal only in mutual funds until the 90-day training program is complete). The total is to be the lesser of 5% of current registrants in Alberta, or 100 reps. In addition, firms are to report these numbers to the IDA along with the any exemption request.

Individuals currently registered as RMFRs are exempt from the requirement to upgrade to RR status; however, if they decide to transfer their registration they will be subject to the new rules. These changes affect all applications filed for registration with the IDA’s prairie office.