The Canadian Securities Administrators have published the letter they sent to 2000 business registrants in Canada in July 2001 urging registrants to prepare for T+1. The CSA released the letter along with common questions received by them about the letter and the move to T+1.

The CSA believe that every dealer, registered adviser and other market participant should be aware of the T+1 initiative and the timing for implementing a T+1 settlement period in the North American capital markets. Organizations should consider establishing plans, budgets and allocating resources, if they have not already done so, the regulators say.

The CSA say that if a firm is active in trading or advising in securities, its operations and business practices may be affected by the move to T+1. The U.S. Securities Industry Association announced on October 12 that the target date for completion of the U.S. industry’s conversion to T+1 has been moved from June 2004 to June 2005. Canada’s target T+1 conversion date will be similarly delayed to June 2005 as Canada’s securities industry must work in tandem with its American counterparts to speed up securities settlement.

The CSA have formed a T+1 Committee and are considering what regulatory role, if any, the securities regulators should play in the move to T+1. The CSA are currently reviewing securities legislation, regulation, rules and policies to identify regulatory requirements and other provisions that may reasonably be inconsistent with the move to T+1.

No decision has been made whether to require registrants to settle trades by T+1. The CSA T+1 Committee is considering this option.