CSA Staff Notice: 31-343 - Conflicts of interest in distributing securities of related or connected issuers
Delivered by e-mail
November 19, 2015
Today, staff of the Canadian Securities Administrators (CSA staff) published CSA Staff Notice 31-343 Conflicts of interest in distributing securities of related or connected issuers.
Staff of the CSA consider the identification of, and response to, conflicts of interest to be fundamental regulatory obligations. A registrant must manage conflicts that arise whenever it trades in or advises on securities issued by related or connected issuers. Firms registered solely as exempt market dealers, that distribute securities of related or connected issuers with common mind and management (captive dealers) raise serious concerns in terms of how they respond to these conflicts of interest.
CSA staff believe that additional guidance (including “acceptable practices” and “unacceptable practices”) provided in the notice will help captive dealers meet their regulatory obligations.
The notice can be found on our website: http://www.osc.gov.on.ca/documents/en/Securities-Category3/csa_20151119_31-343_sn-conflicts-of-interest.pdf
If you have any questions please contact Stratis Kourous at 416-593-2340 or Amy Tsai at 416-593-8074.