For Immediate Release
July 21, 2006

Canadian Regulators Seek Comments on Soft Dollar Arrangements

Toronto – The Canadian Securities Administrators (CSA) are seeking comments on proposed National Instrument 23-102 - Use of Client Brokerage Commissions as Payment for Order Execution Services or Research (“Soft Dollar” Arrangements) and Companion Policy 23-102. The proposed instrument and companion policy clarify how advisers and registered dealers can use client brokerage commissions and include guidelines regarding disclosure of “soft dollar” arrangements.

Soft dollar arrangements refer to the advisers’ use of brokerage commission dollars to pay for trading-related goods or services, including research, advice and analytical tools in addition to trade execution costs. Such arrangements may result in conflicts of interest and obscure the adviser’s best execution.

“The goal here is to ensure that advisers manage the appearance of conflicts of interest that may develop when investors do not have complete information about how the adviser spends their money,” says Jean St-Gelais, Chair of the CSA and President & Chief Executive Officer of the Autorité des marchés financiers (Québec). “Investors may not be aware of soft dollar practices. Enhancing disclosure requirements in this area will improve investors’ confidence.”

The CSA Proposed National Instrument 23-102 - Use of Client Brokerage Commissions as Payment for Order Execution Services or Research (“Soft Dollar” Arrangements), - and Companion Policy 23-102 are available on several CSA members’ websites. The comment period ends on October 19th, 2006.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

For more information:

Laurie Gillett
Ontario Securities Commission
416-595-8913

Andrew Poon
British Columbia Securities Commission
604-899-6880

Tamera Van Brunt
Alberta Securities Commission
403-297-2664

Barbara Shourounis
Saskatchewan Financial Services Commission
306-787-5842

Ainsley Cunningham
Manitoba Securities Commission
204-945-4733

Frédéric Alberro
Autorité des marchés financiers
514-940-2176