September 1, 1994
TO: BOARD OF GOVERNORS NO. 91-94
INTERNATIONAL MEMBERS NO. 8-94
INVESTMENT ADVISER ASSOCIATE MEMBERS NO. 35-94
INVESTMENT ADVISER MEMBERS NO. 40-94
RE: ONTARIO APPROVES REGISTRATION OF NON-RESIDENT U.S. ADVISERS
__________________________________________________________
We are pleased to inform you that earlier this week the
Ontario Securities Commission (OSC) issued the attached press
release announcing a revised policy that would permit U.S.
investment advisers to register in Ontario without establishing
residency in Canada. In June 1993, the Institute had asked the
OSC to make this change on the grounds that residency was not
required by Canadian law and that the OSC could permit such
registration consistent with investor protection. (See Institute
Memorandum to International Committee No. 14-93, dated June 21,
1993 and Institute Memorandum to the Board of Governors No. 6-94,
International Members No. 1-94 and Investment Adviser Members No.
2-94, dated January 11, 1994.)
The press release states that advisers who are not resident
in Canada will be permitted to register based on full compliance
with the requirements ordinarily applicable to advisers and
certain additional conditions relating to consent to
jurisdiction, appointment of an agent for service, disclosure,
and custody of client assets. The change in policy will permit
U.S. advisers to advise Canadian mutual funds and non-fund
clients on a non-resident basis. U.S. firms will not be
permitted to distribute securities in Ontario as an underwriter
or dealer on a non-resident basis.
We will keep you informed of developments.
Catherine L. Heron
Vice President & Senior Counsel
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