The Portfolio Management Association of Canada (PMAC) is pleased to have the opportunity to respond to CSA Notice and Request for Comment on Proposed Amendments to National Instrument 33-109 – Registration Information (NI 33-109) and Changes to Companion Policy 33-109CP – Registration Information (33-109 CP) and Related Amendments to National Instrument 31-103 – Registration Requirements, Exemptions and Ongoing Registrants Obligations (NI 31-103) and Changes to Companion Policy 31-103CP – Registration Requirements, Exemptions and Ongoing Registrant Obligations (33-109 CP) modernizing registration information requirements, clarifying outside activity reporting and updating filing deadlines (the Consultation and the Proposed Revisions).
PMAC represents over 290 investment management firms registered as portfolio managers (PMs) with various members of the Canadian Securities Administrators (CSA). Approximately 65% of our members are also registered as investment fund managers (IFMs). In total, our members manage assets in excess of $2.9 trillion for institutional and private client portfolios.
Importantly, while PMAC’s membership is comprised of firms of varying sizes and models, ranging from one-person firms to international and bank-owned firms, and from more traditional models to online advisers, this Consultation will impact each of them. For larger firms, the regulatory burden may be quite different than for smaller firms.
Overall, we appreciate the CSA’s efforts to clarify the information to be submitted by firms and individuals (Regulated Persons) and to reduce regulatory burden associated with these filings. However, we are concerned that, as drafted, the Proposed Revisions with respect to Outside Activities (OAs) will create additional regulatory burden and confusion with respect to reporting requirements. We urge the CSA to re-examine the OA provisions to ensure that they are principles-based and that they account for the amendments to NI 31-103 (Client Focused Reforms) with respect to conflicts of interest.
Read the submission in full here