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The IIAC suggests to relax the regulation for the electronic transmission of documents


Kate McCaffery

27 May 2019 11:30

Photo : Freepik

The prevalence of electronic documents on paper documents has led regulators to change the regulations to allow for electronic delivery (eDelivery) of certain documents to retail investors. However, additional measures are necessary, ” says Ian Russell, president of thecanadian Association of securities trading (IIAC).

In his most recent Letter to the president, Mr. Russell that the changes made since the last five years provide a regulatory framework for the eDelivery, including the repeal of the obligation to obtain the consent to the electronic transmission for each type of documents.

The use of the eDelivery also increased when the investment advisors have been allowed to access the fund facts and other documents and send them electronically to their customers.

Long-term approach

“Surprisingly, the regulation has adapted quickly to the electronic transmission,” he wrote. It should congratulate the canadian securities administrators (CSA) who have shown foresight in working with issuers and brokerage firms in securities to facilitate the electronic transmission of documents and the procedure of voting by proxy. “

Despite the changes, he stressed that the approval process to integrate customers to eDelivery customers remains complex and it is sometimes difficult to obtain permissions.

“The regulators are expected to propose mechanisms more user-friendly in order to facilitate the consent of investors to electronic delivery. Maybe an email or a verbal authorization directly to the advisor could constitute a valid consent, thus avoiding the complex procedure of requiring customer to choose (check boxes) among the options of mail delivery, ” suggests Mr Russell.

It is also proposed that the regulators are considering the use of a “notice-and-access” (customer notification by e-mail with a hyperlink to the prospectus), may be sufficient to constitute a delivery of prospectus.

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