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

5156 GAZETTE OFFICIELLE DU QUÉBEC, December 22, 2021, Vol. 153, No. 51 Part 2 REGULATION TO AMEND REGULATION 13-101 RESPECTING THE SYSTEM FOR ELECTRONIC DOCUMENT ANALYSIS AND RETRIEVAL (SEDAR) Securities Act (chapter V-1.1, s. 331.1, par. (1))

1. Appendix A of Regulation 13-101 respecting the System for Electronic Document
   Analysis and Retrieval (SEDAR) (chapter V-1.1, r. 2) is amended by deleting, wherever they appear under the title “Securities Offerings”, the words “, Annual Information Form”.
2. Transition
   Before 6 September 2022, an investment fund is not required to comply with the Regulation, as amended by this Regulation, if the investment fund complies with the following:
   a) the Regulation, as it was in force on 5 January 2022, and b) Regulation 81-101 respecting Mutual Fund Prospectus Disclosure (chapter V-1.1, r. 38), as it was in force on 5 January 2022.
3. Effective Date
   (1) This Regulation comes into force on 6 January 2022.
   (2) In Saskatchewan, despite paragraph (1), if this Regulation is filed with the Registrar of Regulations after 6 January 2022, this Regulation comes into force on the day on which it is filed with the Registrar of Regulations. REGULATION TO AMEND REGULATION 13-101 RESPECTING THE SYSTEM FOR ELECTRONIC DOCUMENT ANALYSIS AND RETRIEVAL (SEDAR) Securities Act (chapter V-1.1, s. 331.1, par. (1))
4. Appendix A of Regulation 13-101 respecting the System for Electronic Document
   Analysis and Retrieval (SEDAR) (chapter V-1.1, r. 2) is amended by deleting, wherever they appear under the title “Securities Offerings”, the words “, Annual Information Form”.
5. Transition
   Before 6 September 2022, an investment fund is not required to comply with the Regulation, as amended by this Regulation, if the investment fund complies with the following:
   a) the Regulation, as it was in force on 5 January 2022, and b) Regulation 81-101 respecting Mutual Fund Prospectus Disclosure (chapter V-1.1, r. 38), as it was in force on 5 January 2022.
6. Effective Date
   (1) This Regulation comes into force on 6 January 2022.
   (2) In Saskatchewan, despite paragraph (1), if this Regulation is filed with the Registrar of Regulations after 6 January 2022, this Regulation comes into force on the day on which it is filed with the Registrar of Regulations. REGULATION TO AMEND REGULATION 13-101 RESPECTING THE SYSTEM FOR ELECTRONIC DOCUMENT ANALYSIS AND RETRIEVAL (SEDAR) Securities Act (chapter V-1.1, s. 331.1, par. (1))
7. Appendix A of Regulation 13-101 respecting the System for Electronic Document
   Analysis and Retrieval (SEDAR) (chapter V-1.1, r. 2) is amended by deleting, wherever they appear under the title “Securities Offerings”, the words “, Annual Information Form”.
8. Transition
   Before 6 September 2022, an investment fund is not required to comply with the Regulation, as amended by this Regulation, if the investment fund complies with the following:
   a) the Regulation, as it was in force on 5 January 2022, and b) Regulation 81-101 respecting Mutual Fund Prospectus Disclosure (chapter V-1.1, r. 38), as it was in force on 5 January 2022.
9. Effective Date
   (1) This Regulation comes into force on 6 January 2022.
   (2) In Saskatchewan, despite paragraph (1), if this Regulation is filed with the Registrar of Regulations after 6 January 2022, this Regulation comes into force on the day on which it is filed with the Registrar of Regulations. 105420 M.O., 2021-14 Order number V-1.1-2021-14 of the Minister of Finance dated 9 December 2021 Securities Act (chapter V-1.1) Concerning the Regulation to amend Regula￾tion 31-103 respecting Registration Requirements, Exemptions and Ongoing Registrant Obligations Whereas paragraphs 1, 3, 8, 11, 26 and 34 of
   section 331.1 of the Securities Act (chapter V-1.1)
   provide that the Autorité des marchés financiers may make regulations concerning the matters referred to in those paragraphs; Whereas the third and fourth paragraphs of
   section 331.2 of the said Act provide that a draft regulation
   shall be published in the Bulletin de l’Autorité des marchés financiers, accompanied with the notice required under
   section 10 of the Regulations Act (chapter R-18.1) and may
   not be submitted for approval or be made before 30 days have elapsed since its publication; Whereas the first and fifth paragraphs of the said
   section provide that every regulation made under
   section 331.1 must be approved, with or without amend￾ment, by the Minister of Finance and comes into force
   on the date of its publication in the Gazette officielle du Québec or on any later date specified in the regulation; Whereas the Regulation 31-103 respecting Registration Requirements, Exemptions and Ongoing Registrant Obli￾gations was approved by ministerial order no. 2009-04 dated 9 September 2009 (2009, G.O. 2, 3309A); © Éditeur officiel du Québec, 2021

Part 2 GAZETTE OFFICIELLE DU QUÉBEC, December 22, 2021, Vol. 153, No. 51 5157
Whereas there is cause to amend this Regulation; Whereas the draft Regulation to amend Regula￾tion 31-103 respecting Registration Requirements, Exemptions and Ongoing Registrant Obligations was published for consultation in the Bulletin de l’Autorité des marchés financiers, vol. 17, no. 9 of 5 March 2020; Whereas the revised text of the draft Regulation to amend Regulation 31-103 respecting Registration Requirements, Exemptions and Ongoing Registrant Obligations was published for information in the Bulletin de l’Autorité des marchés financiers, vol. 18, no. 28 of 15 July 2021; Whereas the Autorité des marchés financiers made, on 17 November 2021, by the decision no. 2021-PDG￾0054, Regulation to amend Regulation 31-103 respecting Registration Requirements, Exemptions and Ongoing Registrant Obligations; Whereas there is cause to approve this Regulation without amendment; Consequently, the Minister of Finance approves without amendment the Regulation to amend Regula￾tion 31-103 respecting Registration Requirements, Exemptions and Ongoing Registrant Obligations appended hereto. 9 December 2021 Eric Girard Minister of Finance © Éditeur officiel du Québec, 2021

5158 GAZETTE OFFICIELLE DU QUÉBEC, December 22, 2021, Vol. 153, No. 51 Part 2 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. Section 1.1 of Regulation 31-103 respecting Registration Requirements, Exemptions and
   Ongoing Registrant Obligations (chapiter V-1.1, r. 10) is amended:
   (1) by inserting, after the definition of the expression “exempt market dealer”, the following:
   ““financial exploitation” means the use or control of, or deprivation of the use or control of, a financial asset of an individual by a person through undue influence, unlawful conduct or another wrongful act;”; (2) by inserting, after the definition of the expression “successor credit rating organization”, the following:
   ““temporary hold” means a hold that is placed on the purchase or sale of a security on behalf of a client or on the withdrawal or transfer of cash or securities from a client’s account;”; (3) by inserting, after the definition of the expression “transaction charge”, the following:
   ““trusted contact person” means an individual identified by a client to a registrant whom the registrant may contact in accordance with the client’s written consent; ““vulnerable client” means a client who might have an illness, impairment, disability or aging-process limitation that places the client at risk of financial exploitation;”.
2. Section 11.5 of the Regulation, as amended by Regulation amending Regulation 31-103
   respecting Registration Requirements, Exemptions and Ongoing Registrant Obligations approved by Ministerial Order No. 2019-09 of 11 December, 2019 (2019, G.O. 2, 3170), is again amended, in paragraph (2):
   (1) by replacing subparagraph (l) with the following:
   “(l) demonstrate compliance with sections 13.2, 13.2.01, 13.2.1 and 13.3;”; (2) by adding, after subparagraph (r), the following:
   “(s) demonstrate compliance with section 13.19.”.
   © Éditeur officiel du Québec, 2021

Part 2 GAZETTE OFFICIELLE DU QUÉBEC, December 22, 2021, Vol. 153, No. 51 5159
3. The Regulation is amended by inserting, after section 13.2, the following:
“13.2.01. Know your client – trusted contact person (1) Concurrently with taking the reasonable steps required under subsection 13.2(2), a registrant must take reasonable steps to obtain from the client the name and contact information of a trusted contact person, and the written consent of the client for the registrant to contact the trusted contact person to confirm or make inquiries about any of the following:
(a) the registrant’s concerns about possible financial exploitation of the client; (b) the registrant’s concerns about the client’s mental capacity as it relates to the ability of the client to make decisions involving financial matters; (c) the name and contact information of a legal representative of the client, if any; (d) the client’s contact information. (2) A registrant must take reasonable steps to keep current the information required under this section, including updating that information within a reasonable time after the registrant becomes aware of a significant change in the client’s information required under subparagraph 13.2(2)(c)(i). (3) This section does not apply to a registrant in respect of a client that is not an individual.”.
4. The Regulation is amended by adding, in part 13 and after section 13.18, the following
division:
“DIVISION 8 Temporary holds
13.19. Conditions for temporary hold
(1) A registered firm, or a registered individual whose registration is sponsored by the registered firm, must not place a temporary hold on the basis of financial exploitation of a vulnerable client unless the firm reasonably believes all of the following:
(a) the client is a vulnerable client;
(b) financial exploitation of the client has occurred, is occurring, has been attempted or will be attempted. (2) A registered firm, or a registered individual whose registration is sponsored by the registered firm, must not place a temporary hold on the basis of a client’s lack of mental capacity unless the firm reasonably believes that the client does not have the mental capacity to make decisions involving financial matters. © Éditeur officiel du Québec, 2021

5160 GAZETTE OFFICIELLE DU QUÉBEC, December 22, 2021, Vol. 153, No. 51 Part 2 (3) If a registered firm or a registered individual places a temporary hold referred to in subsection (1) or (2), the firm must do all of the following:
(a) document the facts and reasons that caused the firm or individual to place and, if applicable, to continue the temporary hold; (b) provide notice of the temporary hold and the reasons for the temporary hold to the client as soon as possible after placing the temporary hold; (c) review the relevant facts as soon as possible after placing the temporary hold, and on a reasonably frequent basis, to determine if continuing the hold is appropriate; (d) within 30 days of placing the temporary hold and, until the hold is revoked, within every subsequent 30-day period, do either of the following:
(i) revoke the temporary hold;
(ii) provide the client with notice of the firm’s decision to continue the hold and the reasons for that decision.”.
5. Section 14.2 of the Regulation is amended, in paragraph (2):
(1) by inserting, after subparagraph (l), the following:
“(l.1) a description of the circumstances under which a registrant might disclose information about the client or the client’s account to a trusted contact person referred to in subsection 13.2.01(1);”; (2) by adding, after paragraph (o), the following:
“(p) a general explanation of the circumstances under which a registered firm or registered individual may place a temporary hold under section 13.19 and a description of the notice that will be given to the client if a temporary hold is placed or continued under that section.”.
6. (1) This Regulation comes into force on 31 December 2021.
(2) In Saskatchewan, despite paragraph (1), if this Regulation is filed with the Registrar of Regulations after 31 December 2021, this Regulation comes into force on the day on which it is filed with the Registrar of Regulations. 105426 © Éditeur officiel du Québec, 2021