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March 2022 Advocacy Newsletter
Summary:
The pace of requests for comment slowed during March, with the CAC submitting only one letter during the month. The members of the CAC responded to the CSA’s notice on the proposed NI 93-101 and CP 93-101 relating to business conduct for OTC derivatives. This is the third consultation on NI 93-101 and CP 93-101, with the prior consultation having taken place in mid-2018. The changes from the prior iterations of the rule are intended to streamline the operationalization of the requirements (i.e. primarily to allow registered advisers to leverage their existing compliance infrastructure) and ensure that access to OTC products will not be unduly limited to customers in the Canadian OTC derivatives market. The CAC sees many of the provisions of the Proposed Instrument as improvements over the prior proposals and are responsive to comments and concerns raised by market participants, but is concerned with the time it’s now taken to implement comprehensive OTC derivatives regulation in Canada, now being ~14 years since the GFC. The focus on maintaining liquidity for the Canadian marketplace is quite important given the structure of OTC derivatives markets and