Proposed Amendments to NI 31 – 103 Re: Enhanced Protection of Older and Vulnerable Clients

On March 5, 2020 the Canadian Securities Administrators (CSA) published, for a 90-day public comment period, amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) and Companion Policy 31-103CP Registration Requirements, Exemptions and Ongoing Registrant Obligations. The comment period expires on July 20, 2020.

The proposed the amendments will:

• require registrants to take reasonable steps to obtain from their clients the name and contact information of a Trusted Contact Person (TCP), as well as the client’s written consent to contact the TCP in specified circumstances;
• clarify that if there is a reasonable belief that a vulnerable client is being financially exploited or that a client lacks mental capacity, Canadian securities legislation does not prevent a registered firm from placing a temporary holds in circumstances where the firm has a reasonable belief of these concerns, if the firm is otherwise legally entitled to place the hold; and
• steps that a registered firm must take when placing a temporary hold.

MFDA staff participated on the CSA Working Group which was responsible for the development of the amendments to NI 31-103 and 31-103CP.

To view the CSA Publication Notice, along with the proposed amendments and related materials, please go to: www.bcsc.bc.ca.