Standard of Conduct Public Consultation

CSA’s Consultation Paper and request for comments from the public on the Standard of Conduct in the Investment Industry

Your opinion matters: View our invite video

Many Nova Scotians rely heavily on advice from their financial advisors. Understanding what that advice must disclose and what you as an investor need to ask can directly impact your financial future.

The majority of people don’t know the true standard of conduct that is required of their financial advisor under the current laws. Specific changes are being proposed to these laws.

We hosted public consultation sessions across Nova Scotia in July 2016 to present the current rules and proposed changes and to hear from Nova Scotians directly as to what they think of the rules and changes which directly impact their financial future.

There is still time to tell us what you think! Comments deadline is September 30, 2016.

You can send us your comments in the following ways:

Email: NSS Cinquiries@novascotia.ca

Fax: (902) 424-4625

Courier: Nova Scotia Securities Commission PO Box 458, Halifax, NS B3J 2P8

Quick reference guide of the proposed amendments

Comment card to submit your comments

Standard of Conduct in the Investment Industry Consultation Paper

The purpose of this consultation was to seek comment on proposed regulatory action aimed at enhancing the obligations of advisers, dealers and representatives toward their clients. We are of the view that the current Canadian registrant regulatory framework requires enhancements to address the issues we have identified in the client‐registrant relationship, including to better align the interests of registrants with the interests of their clients, to improve outcomes for clients, and to clarify the nature of the client‐registrant relationship for clients.

Failure to file annual financial statements.
Failure to file interim financial statements.
Failure to file an annual or interim management’s discussion and analysis (MD&A) or an annual or interim management report of fund performance (MRFP).
Failure to file an Annual Information Form (AIF).
Failure to file a certification of annual or interim filings required by Multilateral Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (MI 52-109).
Failure to file required proxy materials or a required information circular.
Failure to file an issuer profile supplement on the System for Electronic Disclosure by Insiders (SEDI).
Failure to file a material change report.
Failure to provide a written update after filing a confidential report of a material change.
Failure to file a business acquisition report.
Failure to file annual oil and gas disclosure prescribed by National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities (NI 51-101) or technical reports for a mineral project required under NI 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).
Failure to file a mandatory news release.
Failure to file corporate governance disclosure as required by national Instrument 58-101 Disclosure of Corporate Governance Practices (NI 58-101).
Failure to file audit committee disclosure as required by Multilateral Instrument 52-110 Audit Committees (MI 52-110) or BC Instrument 52-509 Audit Committees.
Failure to include disclosure in an issuer’s MD&A relating to disclosure controls and procedures and their direct effectiveness that is referred to in a certificate filed under MI 52-109.
Financial statements of the reporting issuer, or the auditors’ report accompanying the financial statements, do not comply with the requirements of NI 51-102 Continuous Disclosure Obligations (NI 51-102), National Instrument 81-106 Investment Fund Continuous Disclosure (NI 81-106) or National Instrument 52-107 Acceptable Accounting Principles, Auditing Standards and Reporting Currency (NI 52-107).
The reporting issuer has acknowledged that its financial statements, or the auditors’ report accompanying the financial statements, may no longer be relied upon.
The reporting issuer’s AIF, MD&A, MRFP, information circular, or business acquisition reports do not contain information for each of the content items required by NI 51-102 or NI 81-106.
The reporting issuer’s technical disclosure or other reports do not comply with the disclosure requirements of NI 43-101 or 51-101.
Failure to pay a fee required by the Act or the regulations.
Failure to comply with any other requirement related to continuous disclosure.