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The National Instrument and Companion Policy are slated to come into force on Ma y 1, 1998. The National Instrument is expected to be adopted as a rule in B.C., Alberta, Manitoba, Ontario, and Nova Scotia, a Commission regulation in Saskatchewan, and as a policy in all other CSA jurisdictions. The Companion Policy is expected to be implemented as a policy in all CSA jurisdictions.
Proposed National Instrument 44-101, Forms, Companion Policy, and Implementing Rule 44-801 will replace National Policy No. 47, which deals with the Prompt Offering Qualification System (the POP system), and those provisions of National Policy No. 1 that deal with clearance procedures for initial Annual Information Forms (AIFs) and short form prospectuses. In Ontario, the Rules, In the Matter of the Prompt Offering Qualification System, (1997), 20 OSCB 1217 and In the Matter of National Policy 47 and the Sol icitation of Expressions of Interest, (1997), 20 OSCB 1217, expire on the coming into force of the proposed National Instrument. The POP system operates through the incorporation by reference in a short form prospectus of an issuer's AIF, information circular, financial statements and material change reports.
Proposed National Instrument 33-101 imposes conditions to protect clients' assets when dealers act as administrators of self-directed RRSPs, RESPs, or RRIFs. The proposed National Instrument imports the requirements of the Joint Regulatory Financial Questionnaire and Report, which prescribes acceptable trustees and securities locations. It requires that the trustee remain primarily liable to planholders, even though the dealer is acting as administrator. It prescribes the administrative functions that the dealer must undertake, such as disclosure, record keeping, and maintaining control over plan securities and safekeeping. The proposed Instrument also prescribes the timing for delivery of cash balances from plan accounts to the trustee and prohibits agreements to set-off. Finally, the proposed Instrument requires dealers and others to receive necessary regulatory approvals before the dealer becomes an administrator of a plan.