Blanket Order 93-931 Exemption from Record Retention Requirements in National Instrument 93-101 Derivatives: Business Conduct
September 26, 2024 On September 28, 2023, the CSA published National Instrument 93-101 Derivatives: Business Conduct (the Business Conduct Rule) which comes into force on September 28, 2024 (the Effective Date). It includes a record retention requirement in section 36.(1) for the records required to be maintained under the Rule that is 8 years in Manitoba and 7 years in other jurisdictions. 1 The 8 year requirement for Manitoba was included in the Business Conduct Rule to align with the 8 year limitation period in section 137 of the Securities Act (Manitoba) (the Act) for prosecutions of offences. This provision was published on two prior occasions and did not receive comment from industry.
Recently, Staff received submissions from certain derivatives market participants about the 8-year record retention requirement in Manitoba. Concerns were expressed about the burden imposed on industry by this requirement and the difficulty of retaining the records for an additional year as compared to other jurisdictions. The Manitoba Securities Commission has issued Blanket Order 93-931 Exemption from Record Retention Requirements in National Instrument 93-101 Derivatives: Business Conduct to ensure the record retention requirement is harmonized with the other jurisdictions. The Blanket Order comes into force on the Effective Date.
Staff note that the limitation period in section 137 of the Act for prosecutions of offences remains 8 years. Market participants should consider that limitation period when dealing with issues related to record retention.
Any questions can be referred to Leigh-Anne Mercier, General Counsel by email to leigh-anne.mercier@gov.mb.ca.
1 36.(1) The records required to be maintained in this Instrument must be kept in a safe location, readily accessible and in a durable form for a period of,
(a) except in Manitoba, 7 years from the date the record is created, and (b) in Manitoba, 8 years from the date the record is created.
THE SECURITIES ACT Subsection 20(1) National Instrument 93-101
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Manitoba Financial Services Agency
Order No. 7662 Date: September 26, 2024
MANITOBA SECURITIES COMMISSION BLANKET ORDER 93-931
Re: Exemption for derivatives firms from record retention requirements under National Instrument 93-101 Derivatives: Business Conduct Rule
WHEREAS (A) Staff of The Manitoba Securities Commission (the Commission) seeks an exemption from derivatives reporting requirements under National Instrument 93-101 Derivatives: Business Conduct Rule.
Definitions (B) Terms defined in the Securities Act (Manitoba) (the Act), Local Rule 14-501 Definitions and National Instrument 93-101 Derivatives: Business Conduct (the Business Conduct Rule) have the same meaning in this Order.
Background (C) On September 28, 2023, the Manitoba Securities Commission (the Commission) published the Business Conduct Rule. The Business Conduct Rule comes into force on September 28, 2024 (the effective date).
(D) Section 36.1 (b) of the Business Conduct Rule provides that records required to be maintained under the Rule must be kept in a safe location, readily accessible and in a durable form for a period of
(a) except in Manitoba, 7 years from the date the record is created, and (b) in Manitoba, 8 years from the date the record is created. (E) After publication of the advanced notice of adoption of the Business Conduct Rule on September 28, 2023, staff of the Commission received submissions from certain derivatives market participants that retaining records for 8 years in Manitoba, instead of 7 years as in other jurisdictions, would result in significant costs and be difficult to implement.