CSA NI 45-106 and NI 31-103 Syndicated Mortgages

May 18, 2018

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CSA NI 45-106 and NI 31-103 Syndicated Mortgages

Letter Summary:

The CSA published two proposals to enhance investor protection and increase harmony in the regulatory framework for syndicated mortgages.  The prospectus and registration exemptions for securities that are syndicated mortgages in Ontario, Newfoundland, Northwest Territories, Nova Scotia, Nunavut, Yukon and PEI will be removed.  The Private issuer prospectus exemption will also be removed.  Going forward exemption distributions of syndicated mortgages will need to rely on a different prospectus exemption such as the accredited investor exemption or the OM exemption. 


Overview of the Council’s Comments:

The council is supportive of the proposed amendments.  The new prospectus exemptions and registration requirements will harmonize the regulatory framework for the distribution of syndicated mortgages to retail investors. necessary.