The Portfolio Management Association of Canada (PMAC), through its Industry, Regulation & Tax Committee, is pleased to have the opportunity to submit the following comments regarding CSA Notice and Request for Comment – Proposed Amendments to National Instrument 31-103 – Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) and Companion Policy (CP 31-103) to Enhance Protection of Older and Vulnerable Clients (both, the Consultation or the Proposed Amendments).
PMAC represents over 280 investment management firms registered to do business in Canada as portfolio managers. In addition to this primary registration, most of our members are also registered as investment fund managers and/or exempt market dealers. PMAC’s members encompass both large and small firms managing total assets in excess of $2.8 trillion for institutional and private client portfolios.
- Establish a regulatory safe harbour for registrants that act in good faith to contact trusted contact persons (TCPs) and/or place temporary holds on client accounts (Holds) within the requirements of the Proposed Amendments in the short term while in the longer term, work with the necessary federal and provincial stakeholders to establish a legal safe harbour for registrants that act in good faith to contact TCPs and/or place Holds;
- Clarify that the TCP must be of the age of majority in their own jurisdiction of residence, and that the TCP does not need to reside in the same jurisdiction as the client;
- Move from a 30-day notification requirement regarding the status of a Hold to a more principles-based notification framework where status updates would be required for significant developments;
- Enhance third-party supports for registrants and clients in the case of suspected financial exploitation and abuse and/or diminished capacity; and
- Empower investors with information about registration and registration categories through the provision of easier-to-find and understand information on the National Registration Search Database.
The official submission can be viewed in full here.