Delegation to CIRO of Registration Function for Investment Dealers and Mutual Fund Dealers - Frequently Asked Questions

Effective April 1, 2025, the Nova Scotia Securities Commission (NSSC) will delegate its registration function for investment dealers and mutual fund dealers, and the individuals who act on their behalf, to the Canadian Investment Regulatory Organization (CIRO) (the Delegation). The NSSC will retain concurrent authority for the delegated functions and CIRO’s performance pursuant to the Delegation will be subject to enhanced, risk-based oversight by the NSSC.

The following guidance addresses operational aspects of the Delegation. Note that this guidance only relates to securities law requirements and does not address CIRO membership requirements. CIRO will be publishing further guidance in order to establish a streamlined and coordinated process for both registration and CIRO membership applications.

We will update this guidance after we have had the opportunity to assess the implementation of the Delegation.

The responses set out below represent the views of NSSC staff and do not constitute legal advice.

General Questions:

1 What is the NSSC delegating to CIRO?

The NSSC is delegating to CIRO the registration function for the following registration categories:

Firm categories:

Investment dealer
Mutual fund dealer

Individual categories (at the above noted firms)

Ultimate designated person (UDP)
Chief compliance officer (CCO)
Dealing representative

This includes the review and approval of applications for initial registration, reinstatement, renewal, and changes to registration information.

If the registration application involves multiple categories, where any one of those categories has not been delegated to CIRO, the NSSC and CIRO will conduct a coordinated review and approval process.

2 When will the delegation take place?

The Delegation will take effect on April 1, 2025.

3 What categories of registration are not being delegated to CIRO?

The registration function for the following firm categories, and the individuals who act on their behalf, is not being delegated to CIRO at this time:

Portfolio manager
Exempt market dealer
Investment fund manager
Restricted dealer
Restricted portfolio manager
Scholarship plan dealer

4 What does this mean for applications for registration and submissions that are in-progress when the delegation takes place?

To ensure a smooth transition, NSSC and CIRO will collaborate closely on registration responsibilities:

NSSC staff will continue to review applications for registration and other submissions filed with the NSSC before April 1, 2025. This includes applications filed by both firms and individuals.

For an interim period following April 1, 2025, the NSSC will assist CIRO with background checks and certain conduct-related matters for applicants and registrants whose principal jurisdiction is Nova Scotia. For this reason, applicants may still be contacted by NSSC staff regarding their application or submission.

5 Will we still be using the National Registration Database (NRD)?

Yes. Individuals seeking registration or reinstatement must continue to complete and file a Form 33-109F4 (Registration of Individuals and Review of Permitted Individuals) and pay the applicable fee, through NRD.

NRD will direct the application to the NSSC or CIRO, as appropriate. Once registered, individuals must also make filings for changes to their registration information through NRD.

6 Will the information that firms and individuals are required to submit to the regulator change?

No. There will be no changes to the required information for registration applications.

Firms and individuals will still be required to use the forms to National Instrument 33-109 Registration Information (NI 33-109).

CIRO will be publishing further guidance to assist firms with the filing requirements for both approvals and delegated registration matters.

Compliance Examinations:

7 What is changing with respect to compliance examinations of firms?

CIRO will continue to conduct compliance examinations of investment dealers and mutual fund dealers. The NSSC may also conduct compliance examinations of investment dealers and mutual fund dealers that carry on business in Nova Scotia.

The NSSC will continue to conduct compliance examinations of:

Portfolio managers
Exempt market dealers
Investment fund managers
Restricted dealers
Restricted portfolio managers
Scholarship plan dealers

Firm Registration:

8 How do I register a firm?

If a firm is seeking to apply for registration as an investment dealer or mutual fund dealer in Nova Scotia, it must file a Form 33-109F6 Firm Registration (Form 33-109F6) with CIRO. It can do this by including a completed Form 33-109F6 with its CIRO Membership Application. This applies to firms seeking to apply as “dual registered firms” as well. For more information, please refer to Becoming a Dealer on the CIRO website.

If a firm is seeking registration as an investment dealer or mutual fund dealer combined with a registration category that has not been delegated to CIRO (for example, investment fund manager), it must file the Form 33-109F6 with both the NSSC and CIRO. In these circumstances, the applications will be reviewed by both the NSSC and CIRO staff.

Individual Registration:

9 How do I register as an individual?

When an individual seeks registration or review as a permitted individual, the individual must continue to complete and file a Form 33-109F4 through NRD.

NRD will direct the application to the NSSC or CIRO, as appropriate.

Applications to act on behalf of an investment dealer or a mutual fund dealer, and another registration category that has not been delegated to CIRO, will be reviewed by both the NSSC and CIRO staff.

10 How do I apply for relief from proficiency requirements for an individual?

The NSSC is delegating to CIRO the Director’s authority to grant relief from the proficiency requirements in NI 31-103 for dealing representatives and chief compliance officers of mutual fund dealers.

Individuals who wish to become registered as a dealing representative or chief compliance officer of a mutual fund dealer, and who are unable to comply with the proficiency requirements set out in part 3 of NI 31-103, must apply to CIRO for an exemption.

CIRO will be publishing guidance on how to apply to CIRO for proficiency relief.

Please note that the proficiency requirements for individuals who act on behalf of investment dealers are in the CIRO rules.

11 How will background checks and conduct matters be handled?

For a period following April 1, 2025, in relation to applicants and registrants whose principal jurisdiction is Nova Scotia, the NSSC will assist CIRO with the review of applications for registration and ongoing suitability for registration by conducting background checks on individuals and assisting with certain conduct matters. For this reason, you may still be contacted by NSSC staff regarding your application or submission.