(August 21 – 11:45 ET) – The Ontario Securities Commission reports that the Ontario Minister of Finance has approved its rule covering proficiency requirements for registrants, putting the new rule into force effective immediately.
The new rule sets out proficiency requirements for the registration as salespersons of brokers, investment dealers and securities dealers. Reps have to complete the Canadian Securities Course, and either the Conduct and Practices Course or the Partners, Directors and Senior Officers Qualifying Examination. Reps have 30 months from the date of registration to complete either the Professional Financial Planning Course or the first course of the Canadian Investment Management Program.
Restricted registrations — limited to mutual funds — are permitted at securities dealers for reps that have completed either the CSC or the Canadian Investment Funds Course. A securities dealer is limited to having no more than 100 restricted reps, and no more than 5% of its sales force can be restricted reps. This part of the rule had been controversial because there was some fear that firms could register their mutual fund reps under the IDA, avoiding the new MFDA and gutting its prospective membership.
Mutual fund dealer reps must complete either the CSC, CIF, or the Investment Funds in Canada Course. The rule also sets out proficiency requirements for partners, officers, branch managers and compliance officers of both securities and mutual fund dealers, securities advisers, investment counsel and portfolio managers, scholarship plan dealers, and for reps selling labour-sponsored funds.
The commission has also designated the course entitled “Labour Sponsored Investment Funds”, now offered by the Investment Funds Institute of Canada and previously offered by Steven G. Kelman and Associates Limited, as an approved LSIF course under the Rule.
-IE Staff