The Securities Act ) Order No. 6076 ) Section 20(1) and National Instrument 31-103 ) February 26, 2010 Registration Requirements and Exemptions ) National Instrument 31-103 Registration Requirements and Exemptions Exemption from paragraph 13.2(2)(b) for mutual fund dealers BLANKET ORDER 31-511 Interpretation Unless otherwise defined in this decision or the context otherwise requires, terms used in this decision that are defined in NI 31-103 or National Instrument 14-101 Definitions have the same meaning. WHEREAS 1. Paragraph 13.2(2)(b) of NI 31-103 provides that a registrant must take reasonable steps to establish whether a client is an insider of a reporting issuer or any other issuer whose securities are publicly traded. 2. The purpose of this requirement is to ensure compliance with insider trading rules by requiring dealers to notify a client of the client’s obligation to file an insider trade report. 3. If a registrant limits its trading with clients to certain securities, only in very rare circumstances will a trade require the filing of an insider trade report. 4. Compliance with paragraph 13.2(2)(b) of NI 31-103 presents significant costs to mutual fund dealers that are not justified when trading with a client is limited to certain securities. The Commission is of the opinion that it would not be prejudicial to the public interest to make the order requested. IT IS ORDERED: 1. THAT under s. 20(1) of The Securities Act, R.S.M. 1988, s. 50, A person or company registered in the category of a mutual fund dealer as defined in NI 31-103 registered in Manitoba is exempt from paragraph 13.2(2)(b) of NI 31-103 if such person or company is not registered in any other categories specified in section 7.1 of NI 31-103. 500-400 St. Mary Avenue, Winnipeg, Manitoba R3C 4K5 • tel: (204) 945.2548 • fax: (204) 945.0330 • www.msc.gov.mb.ca
2. This order will come into effect on February 26, 2010. BY ORDER OF THE COMMISSION "Chris Besko" Deputy Director
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