Bulletins & Developments in a Nutshell

Bulletin | And The Winner Is… | June 2017

The suspense is over – the votes have been tallied and the High Park Zoo’s capybara babies have been named Alex, Geddy and Neil, after legendary rock band and proclaimed AUM Law favorite, Rush. Geddy Lee gave “thanks to all who voted to give us this special honour,” adding “by the way, which one is me? In the picture I saw none of them were wearing glasses.”

The babies’ parents, the infamous capybaras Bonnie and Clyde, became media sensations last May when they escaped the High Park Zoo and evaded capture for weeks, sparking bigfoot-like sightings and searches.

Unfortunately, reporting financial institutions will not be able to escape or evade the new CRS reporting requirements as of July 1st. We will look at this and many other developments in this month’s AUM Law Bulletin.

In this bulletin:

In Brief: OSC Roundtable on Discontinuing Embedded Commissions ●  No Contest – Another OSC Settlement ● Final CASL Reminder

  1. Are You Ready For CRS?
  2. Changing Expectations of Ontario Securities Commission for Fund-of-Fund Relief
  3. Reports of Exempt Distribution: Fine Tuning the Fine Print or More?
  4. What Are the Prohibited Investment Rules?
  5. Restrictive Covenants in Employment Contracts – How Restrictive is Too Restrictive?
  6. Quebec Complaint Reporting System filing due July 30, 2017

Frequently Asked Questions
News & Events

Click the link to access our bulletin summarizing these recent developments. >>  AUM Law Bulletin – And The Winner Is… – June 2017

Regulatory Alert | Postponing the Inevitable or Second Thoughts?

Delay in the Implementation of the CASL Private Right of Action

For the second time in recent days, the implementation of a key (and much hyped) regulatory change has been delayed. On June 7, 2017, the federal government announced it was suspending the implementation of CASL’s private right of action provisions, which were due to come into force on July 1, 2017. As we have mentioned in previous Bulletins, the provisions create a private right of action for individuals alleging they have been affected by a CASL contravention, with the possibility of class actions a particular concern.

 

Click the link to access our bulletin summarizing these recent developments. >> Regulatory Alert – Postponing the Inevitable or Second Thoughts.

Bulletin | The Good, the Bad, and the Non-Compliant | May 2017

Did you know….Clint Eastwood was born on this day in 1930? Though Eastwood’s recent career has been characterized by “get off my lawn” rants, in the 60’s he was the break-out star of Sergio Leone’s spaghetti westerns, particularly the cult classic The Good, The Bad and the Ugly.

The Good, the Bad and the Ugly could also characterize the results of recent regulatory compliance sweeps, as demonstrated by the CSA’s recent Staff Notice 31-350 and the ASC’s recent EMD review. We will discuss this and much more in this month’s AUM Bulletin.  We hope it makes your day.

In this bulletin:

In Brief:   Common Reporting Standard ● T+2 Is Upon Us ● AML Alert ● Attention Cayman Master-Feeder Fund Structures!

  1. Compliance Sweeps Reveal Room for Improvement
  2. No Love for the BIS
  3. Border Patrol – Privacy Edition
  4. Canada’s Anti-Spam Legislation (CASL): Crystalize Your Consent
  5. Are Key Changes to Ontario’s Employment Law Regime Coming Down the Pipe?

Frequently Asked Questions
News & Events

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin – The Good, the Bad and the Non-Compliant – May 2017

Bulletin | Think Before You Press Send | April 2017

Happy Ed Balls Day!

On this day in 2011, former British MP Ed Balls accidentally tweeted his own name while shopping for the ingredients for his famous 12 hour pulled pork recipe. Twitter exploded, with hundreds of people re-tweeting his mistake, making Ed Balls an instant viral sensation. To add insult to injury, Ed did not delete the tweet once he realized his mistake, as he “did not know you could”. Today marks the 6th anniversary of Ed Balls Day, with festivities including countless memes from our friends across the pond as well as a commemorative “Ed Balls” tweet from the man himself at 4:20 BST.

While Ed Balls’ misfire ultimately ended on a high note, Canadian businesses who fail to think before they hit send may not find their resulting situation too funny. With the private right of action for CASL violations coming into force on July 1st, a solid CASL Compliance Program is more important than ever. We will explore this and much more in this month’s AUM Law Bulletin.

In this bulletin:

In Brief:   U.S. Regulatory Sanctions Now Consider Victims’ Vulnerability  ●  Greater Cybersecurity Co-operation Recommended by the CSA  ●  New Procedural Rules and Guidelines Proposed by the OSC

  1. The CASL Clock is Ticking
  2. The Ontario Budget and Financial Sector Scrutiny – Syndicated Mortgages, Best Interest Standard and Much More…
  3. CSA Publishes Proposed Business Conduct Rules for Derivatives Dealers and Advisers
  4. CSA Proposes Binary Options Trading Ban

Frequently Asked Questions
News & Events

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin Think Before You Press Send April 2017

Bulletin | Weapon of Choice | March 2017

Did you know… Cult icon Christopher Walken was born on this day in 1943? Known for his diverse range of roles in classics such as Pulp Fiction and The Deer Hunter, perhaps Walken’s most famous role remains record producer Bruce Dickinson in SNL’s VH1 “More Cowbell” skit. Continuing with the musical theme, Walken famously danced his way through the iconic Weapon of Choice music video, which VH1 anointed Best Video of All Time.

In this month’s Bulletin we will explore the OSC’s current “weapon of choice”, or no contest settlements. We will also take a look at the OSC’s Statement of Priorities, highlights from the 2017 Federal Budget, and much more!

In this bulletin:

In Brief:   OBSI’s Expanding Powers and Increasing Complaints  ●  Climate Change on the CSA’s Agenda  ●  Blockchain-Based Models May Trigger Registration Requirements

  1. OSC No-Contest Settlements: To Settle or Not to Settle
  2. 2017 Federal Budget and Mutual Fund Corporations
  3. Waverley – The Long Awaited Commission Decision
  4. OSC Releases its Draft Statement of Priorities
  5. New Compliance Guidance for CRS and FATCA

Frequently Asked Questions
News & Events

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin Weapon of Choice March 2017

Bulletin | All Shook Up | February 2017

Earlier this month, Prime Minister Justin Trudeau bested President Donald Trump in an epic contest of wills (and arm strength) in the handshake that was seen around the world. After Japanese Prime Minister Shinzo Abe and US Supreme Court nominee Neil Gorsuch were thoroughly unprepared for (and possibly injured by) Trump’s bizarre handshake style, Trudeau held his own in what has been heralded as one of the biggest displays of dominance in Canadian history.

Though we don’t have anything this dramatic to offer in this month’s Bulletin, we do hope you will find it illuminating in any event!

In this bulletin:

In Brief:   Hefty FINTRAC Penalty Target Revealed  ●  CRM2 Investor Website

  1. Annual CSA Enforcement Report – No Contest
  2. MFDA 2016 Year in Review – Out with the Old and In with the New
  3. New OSFI Deadline for Margin Requirements
  4. Transacting in the Exempt Market?
  5. Working From Home – Not Always a Casual Affair
  6. CSA’s New Regulatory Sandbox

Frequently Asked Questions
News & Events

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin All Shook Up February 2017

Bulletin | Washington Upset | January 2017

No, we’re not talking about Denzel Washington’s recent upset of Casey Affleck in their fierce battle for the SAG Best Actor award (though that was quite a moment). In a month that has been marked by a U.S. inauguration, historic protests, and political turmoil, it is difficult not to feel a little overwhelmed. While there is much to discuss in this month’s Bulletin, we at AUM Law find that reviewing the OSC’s Investment Fund Practitioner is a reliable way to lower our resting heart rates in times of stress. And so we will begin there. Please take some deep cleansing breaths and enjoy.

In this bulletin:

In Brief:   OBSI Explores Use of New Enforcement Powers  ●  OSC’s New Fintech Advisory Committee

  1. Highlights From OSC’s December 2016 Investment Funds Practitioner
  2. Employment Law Expertise – We Have It!
  3. Embedded Commissions – Soon to be Dislodged?
  4. Dōmo arigatō, Mr. Roboto
  5. MFDA Provides Guidance on Suitability
  6. New Record-Keeping Requirements for Ontario Corporations that Own Real Property
  7. Deadlines, Deadlines….
  8. AML Obligations – The Gift that Keeps on Giving

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin Washington Upset January 2017

Bulletin | The Best of 2016 | December 2016

We at AUM Law have judged the regulatory landscape of 2016, and though there will be no cash prize, we have rounded up the top Regulatory Highlights of the Year (in no particular order). As an added bonus, we have linked our previous and related Bulletin articles should you wish to catch up on your reading over a glass of eggnog (or while the in-laws visit). Happy Holidays and all the best for 2017!

In this bulletin
  • Regulatory Highlights of 2016
  1. The OSC Has Been A Busy Beaver
  2. What is FinTech Anyways? Robo-Advisors, Crowdfunding, LaunchPads and More…
  3. The Cyber
  4. Privacy
  5. CASL Hassle
  6. Fun Facts About Fund Facts
  7. Developments in AML
  8. New Private Placement Forms
  • 2017 Teaser – Notices Galore
  • And one reminder before you go…

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin Best of 2016 December 2016

Bulletin | Closing Time | November 2016

Canadians remembered those we lost on November 11 and mourned the passing of legendary poet and singer, Leonard Cohen, on November 7. The voice of the national icon and spiritual guide, best known for his song Hallelujah, will be sorely missed.

AUM Law will act as your regulatory (not spiritual…unless you’re a fixed fee client) guide to recent IIROC and CSA developments this month, and will shed light on the CRTC’s first decision under Canada’s anti-spam legislation.

In Brief: CMRA Names Its First Chief Regulator  ●  CSA Seeking Participants for Cybersecurity Roundtable  ●  PMAC Announces  New Board

  1. IIROC Releases Proposed Guidance on Order Execution Only Services
  2. A Published Electronic Address Does Not Always Trigger Implied Consent
  3. CSA’s Guidance for Portfolio Managers for Service Arrangements with IIROC
    Dealer Members
  4. You’ve Got Mail – Do Benchmarks Require a Licensing Fee?
  • Frequently Asked Questions
  • News & Upcoming Events

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin Closing Time November 2016

Reminder | November 2016

OSC Annual Participation Fee Calculation forms and payment due December 1, 2016 and December 31, 2016.

Click the link to access our bulletin summarizing this reminder. >> AUM Law – Reminder Bulletin – OSC Annual Participation Fee Calculation – November 2016

 

Bulletin | October 2016

No, we’re not referring to the iconic Swedish vampire thriller of the same name (though we at AUM Law highly recommend it on this All Hallows’ Eve). While this film will give you chills, we’re willing to bet that it’s the fear of letting the wrong ones into your computer systems that keeps you up at night.

There is good reason to worry, as recent revelations surrounding the not so recent Yahoo hacks have demonstrated, not to mention the high-profile security and privacy woes of Ashley Madison. We will examine these and other chilling developments (while paying homage to our favorite frightening flicks) in our annual Halloween edition of the AUM Law Bulletin.

In Brief: OSC Appoints New Enforcement Director  ●  Common Reporting
Standard to Exclude  TFSAs  ●  Survey Says…

  1. Invasion of the Data Snatchers – Yahoo and the Biggest Cyber Breach…Ever?
  2. The Uninvited – Ashley Madison’s Unwanted Guests
  3. It Follows – How to Escape the Shadow of Director’s Liability
  4. When a Stranger Calls (or Emails…) – Kellogg’s CASL Hassle
  5. Angels (not Demons) – AngelList’s New LaunchPad
  6. Help Us Help You
  • Frequently Asked Questions
  • News & Upcoming Events

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin – Let The Right One In – October 2016

Bulletin | September 2016

Did you know… Murder, She Wrote made its television debut on this day in 1984? Angela Lansbury, as everyone’s favorite mystery writer turned sleuth J.B. Fletcher, solved crimes from Cabot Cove to Moscow in this suspenseful (and highly realistic) tv series.

The suspense is over, however, with respect to the much anticipated Financial Action Task Force (FATF) Mutual Evaluation Report on Canada’s anti-money laundering regime. Spoiler Alert: Results are mixed.

We will take the mystery out of the FATF Report as well as other key regulatory developments in this month’s AUM Law bulletin.

  1. FATF Releases Mutual Evaluation Report on Canada’s AML/CTF Measures
  2. Highlights From OSC’s September 2016 Investment Funds Practitioner
  3. No Double-Dipping – A Reminder Regarding Fees
  4. New TSX DRIP Plan Rules
  5. CSA Publishes Notice on Cyber Security for Market Participants
  6. CSA Publishes Notice on Consideration of Concerns Regarding Report of
    Exempt Distribution
  7. Think of Us When Conducting a Capital Raise
  • Frequently Asked Questions
  • News & Upcoming Events

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin – Mysteries Solved – September 2016

Bulletin | August 2016

August was an exciting month, as the Rio Olympics took the world by storm. Canada demonstrated its national pride by cheering on medalists Penny Oleksiak and Andre De Grasse, and declaring the country “closed” for the final Tragically Hip concert…

The OSC also earned a gold medal this summer, setting a new record for number of new initiatives recently released to registrants! You will have read about these initiatives in our recent bulletins, and this month we look forward to updating you on other developments of note.

  1. OSC Publishes 2016 Annual Report
  2. 2016 OSC Compliance and Registrant Regulation Report – Continued…
  3. Are You in Compliance as a .ca Domain Holder?
  4. Corporate Class Mutual Funds – Tax-Deferred Switches Near an End
  5. Automatic Switching Program – New Relief From Fund Fact Delivery
    Requirements
  6. Investment Fund Manager Registration in Ontario, Québec and Newfoundland
  • Frequently Asked Questions
  • News & Upcoming Events

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin – Rio Grande – August 2016

Bulletin | July 2016

In this bulletin:

In Brief: Amendments to Derivative Data Reporting ● Whistleblower Policy in Effect

  1. 2016 OSC Compliance and Registrant Regulation Report
  2. Adding an Online Platform to Your Existing Registrant
  3. More 31-103 and 33-109 Amendments
  4. OSC Proposes New Rule for Out-Of-Province Distributions
  5. Additional Consultations on Non-Centrally Cleared Derivatives
  6. CRTC Publishes Enforcement Advisory on CASL Consent Records
  7. Help Us Help You
  • Frequently Asked Questions
  • News & Upcoming Events

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin Regulatory Rush July 2016

Bulletin | June 2016

In this bulletin:

  1. Are You Selling Securities Into Canada?
  2. Is Your OM Too Tightly Wrapped?
  3. New AML Guidelines
  4. Competition Bureau to Study FinTech Market
  5. Broadened Insider Trading Definition
  • Frequently Asked Questions
  • AUM Law News

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin June 2016

Bulletin | May 2016

Did you know… on this day in 1919, the New York Stock Exchange closed its doors for the day, to allow frenzied clerks to clear paperwork from a tumultuous month during which trading volumes regularly exceeded an astonishing 1.5 million shares a day. Nobody loves paperwork, but at least back then they didn’t have to worry about cybersecurity!

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin May 2016

Bulletin | Spring Into Action | April 2016

“April is a promise that May is bound to keep…,” said author Hal Borland.

We once again keep our promise of bringing you recent regulatory developments, as we continue to make our way through this season of renewal and change.

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin Spring Into Action April 2016

Bulletin | Are You on the RAQ… Again? | April 2016

You may have received an advance notice from the OSC about its interactive 2016 Risk Assessment Questionnaire (RAQ), which you will need to submit via a dedicated url by June 29, 2016.

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin Are you on the RAQ… Again April 2016

Bulletin | Spring Training | March 2016

As our beloved Toronto Blue Jays finalize their lineup for the start of the 2016 season, so too is the OSC, which recently published a lineup of regulatory initiatives in its Statement of Priorities. We discuss this and much more in our Spring edition of the AUM Law Bulletin.

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin Spring Training March 2016

Bulletin | AUM Law Leap Year Bulletin | February 2016

In this bulletin

MIE Business Trigger ● Recent Business Trigger Decisions ● CSA Enforcement Report

  1. New Exempt Market Filing Requirements
  2. Bond Fund Liquidity
  3. Amendments to Canada’s Early Warning Reporting System and Take-Over
    Bid Regime
  4. Derivative Scope and Trade Reporting Rules Proposed in Other Provinces

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin – AUM Law Leap Year Bulletin – February 2016

In a Nutshell | Mortgage Investment Corporations | February 2016

Are you using the syndicated mortgage exemption and find the related compliance obligations cumbersome?

Are you contemplating creating your own pool by setting up a mortgage investment corporation?

In this publication we discuss how a syndicated mortgage is treated under securities legislation, and what
to keep in mind when structuring a mortgage investment corporation, such as dealer registration and
other obligations.

Click the link to access our nutshell summarizing these recent developments. >> AUM Law Nutshell – February 2016

Bulletin | January 2016

In this bulletin

OM and Crowdfunding Exemptions ● Outsourced CCOs ● Referral Arrangements

  1. Risk Classification for Use in Fund Facts
  2. Proposed Transition to Cooperative Capital Markets Regulatory System
  3. Notifying Regulators of Corporate Changes
  4. General Partners, Registrants and Ownership Chart Reporting
  5. Investment Dealer Exemption Announced
  6. Are you Relying on Section 8.6?
  7. More Fun for Exempt Market Filings in Canada

Click the link to access our bulletin summarizing these recent developments. >> AUM Law Bulletin January 2016

Bulletin | Holiday Greetings | November 2015

In the spirit of the holiday season, we present you with the following gifts:

  1. Robo-Advising: How Easy is it to Add an Online Advice Platform to Your Existing Services?
  2. CSA Conflicts of Interest Notice
  3. More CASL Fines
  4. Cayman Islands Financial Account Reporting for Investment Funds
  5. Final Form of Crowdfunding Regime in Ontario and Other Participating Jurisdictions
  6. Report of Exempt Distribution Filing Deadline
  7. FATCA Registration Now Available for Sponsored Entities
  8. OSC Participation Fee Payment and Annual Registration Fees
  9. Help Us, Help You

Click the link to access our bulletin summarizing these developments. >> AUM Law Bulletin Holiday Greetings November 2015

Bulletin | Tomb It May Concern | October 2015

With ancient Celtic roots, Halloween originated as a harvest festival marking the beginning of winter, a time that the Celts believed opened the link between the living and the dead. The ancient ghouls, fairies and demons have persisted through time, to form part of the more light-hearted celebration we know today.

As we draw nearer to All Hallows’ Eve, we have harvested the most significant developments from the fields of securities and regulatory law – some of these are tricky, none are a treat!

  1. OSC Adopts Whistleblower Policy
  2. New Offering Memorandum Exemption
  3. Annual Participation Fees Due December 1
  4. Registration Deadline for FATCA Extended
  5. Information is a Key Asset: How Are You Protecting It?
  6. CSA Publishes Report on Mutual Fund Fees
  7. Update on Reports of Exempt Distribution
  8. Are You Pre-Clearing Your Employees’ Social Media Activity?

Click the link to access our bulletin summarizing these developments. >> AUM Law Bulletin Tomb It May Concern October 2015

Bulletin | Fall Fever | September 2015

The 1992 Toronto Blue Jays made history by becoming the first non-U.S. team to win the World Series. It has been a long 23-year wait, but Canada’s team is once again poised to become World Champions!

We humbly accept that our September bulletin may not be quite as exciting, but hope you find it useful as you come to bat amidst the curve-balls of developments and requirements in the regulatory landscape.

Click the link to access our bulletin summarizing these developments. >> AUM Law Bulletin Fall Fever September 2015

Bulletin | Back to School | August 2015

We normally associate August with frenzied preparations for a new academic year. But some may also know that this month’s namesake is Augustus, Rome’s first emperor. This shrewd ruler combined lawmaking, institution-building and military might to lay the foundations of an empire that lasted for nearly 1,500 years. August was the month of his greatest victories.

Our mission this month is humbler: to inform you of current and upcoming developments that may affect your business.

Click the link to access our bulletin summarizing these developments. >> AUM Law Bulletin Back to School August 2015

Bulletin | Dog Days of Summer | July 2015

As you enjoy your down time on docks and beaches, we are pleased to send you what we hope is a helpful summer update:

  1. New Regulatory Notices
  2. Long-Awaited Anti-Money Laundering Regulations Released for Comment and Review
  3. OSC Corporate Finance Branch Report on Prospectus Exemptions and Crowdfunding Regime
  4. OSC Staff Notice 81-728 Use of “Index” in Investment Fund Names and Objectives
  5. OSC Report on Mutual Fund Practices Relating to Portfolio Liquidity
  6. CSA Staff Notice on Continuous Disclosure
  7. OSC to Review Compliance with OTC Derivatives Rules
  8. CASL Year in Review

Click the link to access our bulletin summarizing these developments. >> AUM Law Bulletin – Dog Days of Summer – July 2015

Bulletin | June Bugs | June 2015

There are a number of developments that we’re putting bugs in your ear about this month:

  1. Use of Holding Companies
  2. Finalized! Offering Memorandum Wrapper Relief for Offering of Foreign Securities to Permitted Clients
  3. Expanded Insider Trading and Tipping Prohibitions
  4. Proposal for ETF Facts Requirement
  5. In Effect: Amendments to Privacy Legislation
  6. Report on Virtual Currencies Released by Senate Standing Committee on Banking, Trade and Commerce
  7. Registration Exemption for US-Registered Firms
  8. Our Cybersecurity Services

Click the link to access our bulletin summarizing these developments. >> AUM Law Bulletin June Bugs June 2015

In a Nutshell | Crowdfunding Exemptions | June 2015

This is the second of our nutshell series on regulatory developments affecting crowdfunding and other online financing portals. Click here to read the first installment. 

On May 14, 2015, the securities regulatory authorities of British Columbia, Saskatchewan, Manitoba, Québec, New Brunswick and Nova Scotia (the participating jurisdictions) announced that they were adopting substantially harmonized registration and prospectus exemptions (the start-up crowdfunding exemptions) to allow start-up and early-stage companies in these jurisdictions to raise up to $500,000 per calendar year through online funding portals.

Click the link to access our nutshell summarizing these developments. >> AUM Law In a Nutshell Crowdfunding Exemptions June 2015

Bulletin | May Flowers | May 2015

“You are as welcome as the flowers in May,” wrote playwright Charles Macklin. Likewise, we hope you welcome our May bulletin apprising you of the newest regulatory developments:

  1. New Regulatory Notices
  2. Beware and Prepare: Cybersecurity and the OSC
  3. Recent SEC Developments
  4. 81-102 Funds: Rehypothecation of Securities
  5. Comments on OSC Statement of Priorities
  6. Changes to Registered Firms or Individuals’ Information

Click the link to access our bulletin summarizing these developments. >> AUM Law Bulletin May Flowers May 2015

Bulletin | Securities Regulators Ease Venture Issuers’ Continuous Disclosure Obligations | May 2015

Effective June 30, 2015, the Canadian Securities Administrators are adopting regulatory amendments that reduce the continuous disclosure burden of venture issuers.

Click the link to access our bulletin summarizing these developments. >> AUM Law Bulletin Venture Issuer Continuous Disclosure Obligations May 2015

Bulletin | April Showers | April 2015

In keeping with the season, there has been more than a drizzle of new developments this month:

  1. Amendments to OSC Fee Rules Now in Force
  2. OSC Whistleblower Program Contemplated
  3. British Columbia, New Brunswick and Saskatchewan Propose Suitability Prospectus Exemption
  4. Continuous Disclosure Prospectus Exemptions
  5. Federal Budget Proposes Allowing Investment in Limited Partnerships by Registered Charities
  6. Don’t Forget About FATCA

Click the link to access our bulletin summarizing these developments. >> AUM Law Bulletin – April Showers – April 2015

Video Presentation | FAQs on NI 45-106 Prospectus and Registration Exemptions | April 2015

The Canadian Securities Administrators recently announced that they have adopted important changes to National Instrument 45-106 Prospectus and Registration Exemptions (NI 45-106) (to be renamed National Instrument 45-106 Prospectus Exemptions).

Subject to necessary ministerial approvals, the changes are expected to take effect May 5, 2015. The changes affect all fund managers, portfolio advisers and dealers, among others.

We invite you to view our video presentation, in which Erez Blumberger, our Chief Regulatory Counsel, and Kimberly Poster, our Chief Counsel, Investment Funds, answer some of the frequently asked questions about how the changes may affect your operations:

You may wish to also take a look at our February bulletin, which contains additional details about the changes.

Click the link to access the presentation summarizing these developments. >> AUM Law Presentation FAQs on NI 45-106 Prospectus and Registration Exemptions April 2015

Bulletin | Marching Forward | March 2015

With the warmer weather, a few important developments have sprung up:

  1. CSA Amendments to NI 45-106 are Coming: Contact Us for a Fixed Fee Quote
  2. CASL Fulfills its Promise with $1.1 Million Penalty
  3. Marketing Materials Review
  4. Decision in Stradiotto V. BMO Nesbitt Burns Inc. Provides Guidance to Registrants on Negligence and Breach of Suitability

Click the link to access our bulletin summarizing these developments. >> AUM Law Bulletin March Forward March 2015

Cliquez ici pour la version française. >> En avant

Bulletin | Deadline Approaching for OBA Late Fee Amnesty | February 2015

Our January bulletin discussed the Ontario Securities Commission’s one-time late fee
amnesty for outside business activities (OBAs) that were not previously reported on
time. The deadline to submit your application is March 27, 2015.

Click the link to access our bulletin summarizing these developments. >> AUM Law Bulletin February OBA Reminder February 2015

In a Nutshell | Equity Crowdfunding Portals | February 2015

Over the last three years, securities regulators in the United States and Canada have proposed major reforms to securities law requirements to facilitate “equity crowdfunding”, or the sale of securities by issuers to large numbers of investors through online portal intermediaries.

With final rules for equity crowdfunding expected to be in place in 2015, widespread equity crowdfunding may soon become a reality in the United States and Canada. However, even in the absence of these rules, more limited forms of equity crowdfunding are already occurring here and in the United States.

Click the link to access our nutshell summarizing these developments. >> AUM Law Nutshell Equity Crowdfunding Portals

Bulletin | Changes to Exemptions in NI 45-106 | February 2015

The Canadian Securities Administrators (CSA) announced yesterday that they have adopted a number of important changes to National Instrument 45-106 Prospectus and Registration Exemptions (NI 45-106) to address investor protection concerns, facilitate capital raising and further harmonize these exemptions. Subject to necessary ministerial approvals, these changes are expected to take effect May 5, 2015.

Click the link to access our bulletin summarizing these developments. >> AUM Law Bulletin Changes to Exemptions in NI 45-106 February 2015

Bulletin | Kicking Off 2015 | January 2015

With the beginning of a new year, you may have resolved to break a habit, get into better shape or turn over a new leaf in some way. Along with those aspirations, you will also want to remain aware of the following new developments and requirements for registered firms:

  1. Late Fee Amnesty for Certain Outside Business Activities
  2. Registered Firms that Distribute Products Through Third-Party Dealers
  3. Trustees as Permitted Individuals
  4. Extension of Certain CRM2 Timelines

Click the link to access our bulletin summarizing these developments. >> AUM Law Bulletin Kicking Off 2015 January 2015

Cliquez ici pour la version française. >> Coup d’envoi de 2015

Bulletin | Dépôt semestriel au système de rapport de plaintes du Québec pour le 31 janvier | January 2015

Les sociétés inscrites comme conseillers ou courtiers auprès de l’Autorité des marchés financiers (AMF) au Québec doivent préparer et envoyer à l’AMF au plus tard le 31 janvier 2015 leur rapport semestriel concernant toutes les plaintes qu’elles ont reçues entre le 1er juillet et le 31 décembre 2014.

Click the pdf icon to read more. >>

Bulletin | What the FATCA? | December 2014

Since our last update on the Foreign Account Tax Compliance Act (FATCA) and the related Intergovernmental Agreement between Canada and the United States for the Enhanced Exchange of Tax Information under the Canada–United States Tax Convention dated February 5, 2014 (the IGA), there have been new developments that have begun to affect Canadian financial institutions (Canadian FIs), including investment fund managers (IFMs), portfolio managers (PMs) and exempt market dealers (EMDs).

Click the link to access our bulletin summarizing these developments. >> AUM Law Bulletin What the FATCA December 2014

Bulletin | Four Things You Need to Know About Compliance in Q4 | November 2014

The following regulatory developments will be of interest to you in Q4:

  1. Important Changes Coming to NI 31-103 in January 2015
  2. Fund Manager Expense Allocation Practices Increasingly Under Scrutiny
  3. Late Fee “Traps”
  4. CRM-2: Additional Account Statements, Position Cost Information and Valuation of Securities

Click the link to access our bulletin summarizing these developments. >> AUM Law Bulletin – Four Things You Need to Know About Compliance in Q4 – November 2014

In Summary | Regime Change: The Modernization of Investment Funds Continues | October 2014

On June 19, 2014, the Canadian Securities Administrators (CSA), as part of their Modernization of Investment Fund Product Regulation Project (the Modernization Project), published the final amendments (collectively, the
Amendments) to the following:

– National Instrument 81-102 – Mutual Funds (NI 81-102)

– National Instrument 81-106 – Investment Fund Continuous Disclosure (NI 81-106)

– National Instrument 81-101 – Mutual Fund Prospectus Disclosure (NI 81-101)

– National Instrument 41-101 – General Prospectus Requirements (NI 41-101)

– the corresponding companion policies

The Amendments came into force on September 22, 2014.

Click the link to access our summary of certain key changes pursuant to the Amendments. > > AUM Law In Summary Modernization of Investment Funds October 2014

Cliquez ici pour la version française. >> Changement de régime: La modernisation de la règlementation des fonds d’investissement se poursuit

In a Nutshell | Derivatives Trade Reporting | October 2014

The most recent amendments to the OSC Rule 91-507 – Trade Repositories and Derivatives Data Reporting (the TR Rule) came into force on September 9, 2014. The obligations to report all over-the-counter derivative transactions involving a local counterparty to a designated trade repository in Ontario under the TR Rule become effective for dealers and clearing agencies as of October 31, 2014, and for all other counterparties as of June 30, 2015.

Click the link to access our nutshell summarizing these amendments. > > AUM Law In a Nutshell Derivatives Trade Reporting October 2014

Cliquez ici pour la version française. >> Déclaration des transactions de produits dérivés

Bulletin | Help Us Help You | October 2014

Registered firms have ongoing obligations under securities legislation to inform the Ontario Securities
Commission (OSC) of certain changes to a firm or a registered individual’s information. Failure to
notify the OSC within 10 calendar days of most of these changes can lead to a $100 late fee per day up
to a maximum of $5,000 per year, going back two years ($10,000).

Click the pdf icon to access our bulletin summarizing these changes. >>

In a Nutshell | Canada’s Anti-Spam Legislation | August 2014

Canada’s Anti-Spam Legislation (CASL) came into effect on July 1, 2014. CASL applies to all electronic communications sent with a commercial purpose (commercial electronic messages, or CEM) from Canada or accessed in Canada. As a result, many everyday activities such as sending emails or e-newsletters to clients are subject to the new legislation.

Click the link to access our nutshell summarizing the requirements imposed by CASL. > > AUM Law In a Nutshell CASL August 2014

Cliquez ici pour la version française. >> Législation Canadienne Anti-Pourriel

Bulletin | Dépôt semestriel au système de rapport de plaintes du Québec pour le 30 juillet | July 2014

Les sociétés inscrites comme conseillers ou courtiers auprès de l’Autorité des marchés financiers (AMF) au Québec doivent préparer et envoyer à l’AMF leur rapport semestriel concernant toutes les plaintes qu’elles ont reçues entre le 1er janvier et le 30 juin 2014.

Click the pdf icon to read more. >>

Bulletin | The regulations, they are a-changin’… | June 2014

We have previously notified clients about upcoming changes related to the following:

– Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations
– Canada’s Anti-Spam Legislation
– CRM2
– the Ombudsman for Banking Services and Investments
– the Foreign Account Tax Compliance Act

Certain changes will be taking effect imminently, requiring you to update your compliance program, including account opening documents and training of employees.

Click the link to access our bulletin summarizing these changes. >> AUM Law Bulletin The regulations, the are a-changin’ June 2014

Bulletin | Are you on the RAQ? | June 2014

You may have received the OSC’s recent notes reminding you to complete and submit its interactive 2014 Risk Assessment Questionnaire (RAQ) via a dedicated url by July 21, 2014.

Click the link to read more. >> AUM Law Bulletin OSC RAQ June 2014

Bulletin | The Skinny on FATCA | May 2014

The Foreign Account Tax Compliance Act (FATCA) is a complex reporting and withholding regime enacted by the U.S. government in March 2010. It is expected to become operational on July 1, 2014.

FATCA was designed to combat tax evasion by U.S. taxpayers holding assets through non-U.S. financial institutions. Under FATCA, non-U.S. financial institutions around the world, including Canadian financial institutions (Canadian FIs), could be subject to a 30% withholding tax on certain U.S. source payments (including interest and dividends) made to/paid by the non-U.S. financial institution, unless certain account verification, due diligence, registration and reporting requirements are complied with.

Click the link to access our bulletin summarizing the requirements. >> AUM Law Bulletin Skinny on FATCA May 2014

In a Nutshell | Dispute Resolution Service Requirements for Dealers and Advisers | May 2014

Effective August 1, 2014, all registered dealers and advisers (outside of Québec) will be required to use the Ombudsman for Banking Services and Investments (OBSI) as their independent dispute resolution services provider.

Click the link to access our nutshell outlining the important dates and recommended next steps. > > Nutshell Dispute Resolution EN May 30, 2014 (00052175)

Cliquez ici pour la version française. >> Exigences en matière de services de règlement des différends pour les courtiers et conseillers

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