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Notice to SRPC Students:

Regulatory Changes Effective July 11, 2011
Some changes to the duties of registrants that took effect on July 11, 2011 are relevant to students enrolled in the Sales Representative Proficiency Course. You need to be familiar with the changes as there may be questions on these topics on the final examination. This notice summarizes changes to certain rules that are discussed in the SRPC. The RESP Dealers Association of Canada is incorporating these changes into an updated version of the course. Key regulatory changes effective July 11, 2011: 1) National Instrument 31-103: This instrument’s name has been changed to Registration Requirements, Exemptions and Ongoing Registrant Obligations. It is referred to at several places in the SRPC text. 2) Change in Registrant Information: Before July 11, 2011, changes in a registrant’s personal information had to be filed with the regulators within seven days. Now, changes must be filed within ten days. The requirement appears in National Instrument 33-109. Similarly, whenever a registrant was terminated, the time for filing notices of termination has also been extended to ten days from 7. These filing requirements are discussed in Chapter 13 of the SRPC. 3) Know Your Client: Section 13.2 of NI 31-103 requires all registrants to determine if their clients are insiders of any publicly traded companies. In November 2010, the regulators ordered that this obligation did not apply to salespersons of Scholarship Plan Dealers. That exemption continues to apply, but now appears in section 13.2(7) of NI 31-103. KYC obligations are discussed in Chapter 9 of the SRPC. 4) Referral Arrangements: Changes to Section 13.8 of NI 31-103 now make it clear that before a registrant can participate in a referral arrangement with someone outside the dealer, there must be a written agreement in place between the dealer and the outside party. Registered salespersons are not expected to be parties to these referral agreements. Referral arrangements are discussed in Chapter 9 of the SRPC.

▶ More Online: Information about other changes that were made to National Instrument
31-103, National Instrument 33-109 and their companion policies effective July 11, 2011 can be found at: http://www.bcsc.bc.ca/uploadedFiles/securitieslaw/policyBCN/ CSA_Notice_(Appendix_A).pdf

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