Draft Regulation to amend Regulation 31-103 respecting Registration Requirements, Exemptions and Ongoing Registrant Obligations

REGULATION TO AMEND REGULATION 31-103 RESPECTING REGISTRATION REQUIREMENTS, EXEMPTIONS AND ONGOING REGISTRANT OBLIGATIONS Securities Act (chapter V-1.1, s. 331.1, par. (1), (3), (4.1) and (8))

1. Section 14.17 of Regulation 31-103 respecting Registration Requirements,
   Exemptions and Ongoing Registrant Obligations (chapter V-1.1, r. 10) is amended by adding, after subparagraph (u) of paragraph (1), the following:
   “(v) the following notification, or a notification that is substantially similar, disclosed in a footnote to the report, if during the period covered by the report:
   (i) the client owned securities of a mutual fund that is a reporting issuer, (ii) the registered firm was a principal distributor, as defined in section 1.1 of Regulation 81-102 respecting Investment Funds (chapter V-1.1, r. 39), of those securities, and (iii) the registered firm received a payment, other than a payment reported under subparagraphs (g) or (h), in connection with services that the registered firm provided to the manager or to the mutual fund as a principal distributor:
   “We have [an exclusive right to distribute/a material competitive advantage over others in distributing/an exclusive right to distribute or a material competitive advantage over others in distributing] the securities of mutual funds managed by [insert name of the fund]. [Insert name of fund manager] pays us up to a maximum of [insert percentage of the management fee] % of the fund’s management fee for providing services as a principal distributor.”. Transition
2. Before 1 January 2029, a registered firm is not required to comply with the
   Regulation, as amended by this Regulation, if the registered firm complies with the Regulation as it was in force on 31 December 2026. Effective Date
3. (1) This Regulation comes into force on 1 January 2027.
   (2) In Saskatchewan, despite paragraph (1), if this Regulation is filed with the Registrar of Regulations after 1 January 2027, this Regulation comes into force on the day on which it is filed with the Registrar of Regulations.