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), (8), (11), (26) and (34))

1. Regulation 31-103 respecting registration requirements, exemptions and ongoing registrant
   obligations (chapter V-1.1, r. 10) is amended by adding the following section:
   “13.4.3. Restrictions on a registered individual who is in a position of influence (1) In this section, “position of influence” means a position, other than a position with a sponsoring firm, if, due to the functions of the position or the training or specialized knowledge required for the position, an individual in that position would be considered by a reasonable person to have influence over other individuals. (2) For greater certainty, a position of influence under subsection (1) includes the following:
   (a) a leader in a religious or similar organization; (b) a medical doctor; (c) a nurse; (d) a professor, instructor or teacher at a degree or diploma granting institution; (e) a lawyer; (f) a notary. (3) A registered firm must not permit a registered individual of the firm who is in a position of influence to purchase or sell securities or derivatives for, or recommend securities or derivatives to, (a) an individual who (i) has a relationship with the registered individual arising from the position of influence, and (ii) to a reasonable person, would be considered to be susceptible to the registered individual’s influence, or (b) a spouse, parent, brother, sister, grandparent or child of an individual described in paragraph (a). (4) A registered individual who is in a position of influence must not purchase or sell securities or derivatives for, or recommend securities or derivatives to (a) an individual who (i) has a relationship with the registered individual arising from the position of influence, and (ii) to a reasonable person, would be considered to be susceptible to the registered individual’s influence, or (b) a spouse, parent, brother, sister, grandparent or child of an individual described in paragraph (a).”

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2. This Regulation comes into force on (insert here the date of coming into force of this
Regulation).