Vancouver – The Canadian Securities Administrators
(CSA) today published details of a new streamlined process for dealer
and adviser registration in multiple jurisdictions.

All CSA members (except the Ontario Securities Commission) have
approved rule and policy amendments to make the regulatory passport
system available to registrants in all jurisdictions, including
Ontario.

At the same time, CSA members in all provinces and territories
(including Ontario) have approved a new policy containing procedures
for registration in multiple jurisdictions. It includes an interface
for firms and individuals in passport jurisdictions to register
in Ontario.

“Making the passport system available for the dealer and
adviser community will give all market participants faster and simpler
access to Canada’s capital markets,” said CSA Chair Jean St-Gelais.
“This phase of passport will simplify the regulatory processes
and will benefit registrants and investors in all provinces and
territories.”

Amending Multilateral Instrument 11-102 Passport System
to extend passport to the dealer and adviser community is the last
step in fulfilling a major commitment in the memorandum of understanding
regarding securities regulation among the governments of passport
jurisdictions. Ontario is not a passport jurisdiction.

The new policy, National Policy 11-204 Process for Registration
in Multiple Jurisdictions, will replace and streamline the
current National Registration System (NRS) and establish the process
for obtaining registration in multiple jurisdictions, including
Ontario.

Once the rule and policy amendments are effective, the passport
system will be fully implemented. Passport will allow someone to
clear a prospectus, obtain a discretionary exemption or register
in the home province (including Ontario) and have that clearance,
exemption or registration apply automatically in all passport provinces
and territories.

The foundation for passport is a set of harmonized regulatory
requirements consistently interpreted and applied throughout Canada.
The amendments to the passport instrument and the new national policy
will be implemented concurrently with the proposed new national
rule on registration requirements, which will harmonize and simplify
the registration regime in Canada.

The CSA now expects to complete the work on proposed NI 31-103
Registration Requirements by the end of April 2009, when we
expect to be in a position to determine an implementation date.

The amendments, new policy, and related documents
are available on various CSA members’ websites.
The CSA, the council of the securities regulators of Canada’s
provinces and territories, co-ordinates and harmonizes regulation
for the Canadian capital markets.

Passport System for Registration
Backgrounder

What is passport?

A system that gives a market participant access to
capital markets in multiple jurisdictions by dealing only with its
principal regulator and complying with one set of harmonized laws.

How does it work?

• Each market participant has a principal regulator, typically
  in its home jurisdiction
• A market participant can register in all passport jurisdictions
  through its principal regulator
• If the principal regulator imposes terms and conditions, the
  same terms and conditions apply automatically in all non-principal
  passport jurisdictions
• If the principal regulator suspends, terminates or accepts
  a surrender of registration, that decision applies automatically
  in all non-principal passport jurisdictions
• Market participants are subject to one set of harmonized registration
  requirements in all jurisdictions

What are the benefits of passport?

• Simpler – need only one registration decision – comply with
  one set of harmonized laws
• Faster – deal with one regulator
• Cheaper – eliminate professional costs for dealing with multiple
  regulators and different laws

What does it mean for Ontario?

• Ontario market participants have direct access to the markets
  in other jurisdictions by dealing only with the Ontario Securities
  Commission (OSC), even though Ontario has not adopted the passport
  rule
• Other market participants gain access to the Ontario market
  through a streamlined interface

Registration process:

A firm or individual seeking registration in both the home jurisdiction
and one or more passport jurisdictions

• makes a single submission
• has the submission reviewed by only one regulator
• is automatically registered in the other jurisdiction when
  registered in the home jurisdiction

A firm or individual already registered in the home jurisdiction
and seeking registration in the same category in a passport jurisdiction

• makes a single submission
• has the submission reviewed by only one regulator
• is automatically registered in the other jurisdiction if the
  firm or individual is a member of any self regulatory organization
  required for that category

In both cases, if a firm’s or individual’s home jurisdiction
is outside Ontario, but they are seeking registration in Ontario,
the OSC makes its own registration decision.

An investment dealer firm and its representatives continue to
deal with the Investment Industry Regulatory Organization of Canada,
where applicable.

To arrange interviews with CSA Chair Jean St-Gelais, please
contact directly:

Sylvain Théberge
Autorité des marchés financiers
514-940-2176

For more information: