Filing Procedures and Minimum Requirements for Registration as as Adviser under The Commodity Futures Act
"Adviser" means a person or Firm engaging in or holding himself, herself or itself out as engaging in, or being held out by a registrant as engaging in, the business of rendering advice as to trading in contracts, and includes a person or Firm engaging in the publication of newsletters, analyses or reports or broadcasting analyses or reports advising others respecting trading in contracts;" [Act Section 1(1)]
No adviser shall solicit, accept or receive from existing or prospective funds, securities or other property in the adviser's name or to extend credit, to purchase, margin, guarantee or secure a trade for the customer, unless the adviser is also a Futures Commission Merchant (MSC Rule 2000-11, 2.3(1)).
No adviser shall employ an individual for the purpose of advising the adviser's customers as to trading in contracts unless the individual has successfully completed the courses referred to in subsection 3.14(1) of the Rule (MSC Rule 2000-11, 2.3(2)).
No employee of a registered adviser shall advise the adviser's customers as to trading in contracts unless the employee has successfully completed the courses referred to in subsection 3.14(1) and is authorized by the adviser to provide such advice (MSC Rule 2000-11, 2.4(4)).
Firms are required to be enrolled with CDS for the purpose of registering by way of NRD. To obtain information on enrollment, please refer to the NRD website: www.nrd-info.ca; or contact CDS, NRD Administrator help line: 1-800-219-5381. Also, refer to Chapter 3 of the NRD Filer Manual for the NRD forms, fees and other related information that is required to be completed for the purpose of registering with the NRD system.
Once The Manitoba Securities Commission (MSC) has received hard (paper) copies of the required documentation to register the Firm, MSC staff will amend NRD records and notify you. The Firm can then submit the appropriate submissions for the individuals by way of the NRD System.
a) File a completed and executed Form 5 indicating that the Firm is applying for registration as a Dealer (Merchant) (MSC Rule 2000-11, 3.2(1)). Submit appropriate fee of $1,000 for registration of the Dealer (Merchant). Cheque is to be made payable to the Minister of Finance.
b) Provide evidence of membership in a Commodity Futures Exchange registered under the Act in the membership category applicable to its adviser registration under the Act (MSC Rule 2000-11, 3.17).
c) If the Firm does not have an office located in Manitoba, please file a completed Form of Submission to Jurisdiction and Appointment of Agent for Service of Process by Non-Resident Adviser [the Act 67(20)].
d) Submit a brief history of the Firm and any associated companies, describing the nature of the current business activities and those contemplated in the future. In particular, provide a description of the nature of the activities the applicant intends to undertake in Manitoba.
e) Provide evidence that the Firm is registered under The Corporations Act (Manitoba).
Each adviser must meet the minimum personnel requirement at its principal place of business (MSC Rule 3.16(3)).
Subject to such conditions as the Director considers appropriate, the Director may exempt an adviser from the requirements of section 3.16(3) if the Director is satisfied that fewer personnel can provide adequate service to the customers of the adviser. If the Firm is requesting such exemption, please submit a letter indicating how adequate service will be provided to the customers of the adviser (MSC Rule 3.16(4)).
a) File audited financial statements for the current year and the previous four years;
i. If the Firm has not existed for a complete financial year, file an audited opening balance sheet; and
ii. These financial statements must be certified by an officer or partner of the adviser.
b) If the registrant is newly incorporated, please specify date of a fiscal year end.
a) Application for registration for each Partner, Officer or Adviser must be processed through NRD. Please refer to MSC Notice 2002-46 – Notice of Rule Under the Securities Act and The Commodity Futures Act Multilateral Instrument 33-109 and Companion Policy 33-109 Registration Information (Notice 2002-46 and MI 33-109).
b) Individuals who are non-resident a Form of Submission to Jurisdiction and Appointment of Agent for Service of Process by Salesperson, Partner, Officer or Director of Non-Resident Dealer is required to be completed (the Act 67(2)) and retained at the Firm’s head office (Notice 2002-46, MI 33-109(6.1(2))).
c) A current photograph of each Manitoba resident individual registered in a trading or advising category must be available at the applicant’s place of business.
d) Individuals who are non-resident must be registered in their home jurisdiction in a similar category or capacity. Proof of registration will be obtained from the NRD System.
a) No individual shall be granted registration as an adviser unless he or she has successfully completed the Derivatives Fundamentals Course, Futures Licensing Course and Options Licensing Course and has worked under the direct supervision of an individual who is a registered adviser or other registered partner or officer of a registered adviser for a period of at least three years.
b) No individual shall be granted registration as a partner or officer of a registered adviser unless he or she has successfully completed the Derivatives Fundamentals Course, Futures Licensing Course, Options Licensing Course and Partners, Directors, and Senior Officers Qualifying Examination and has worked under the direct supervision of an individual who is a registered adviser; or registered partner or officer of a registered adviser; for a period of at least three years (MSC Rule 3.14(2)).
For each resident officer, partner or adviser, please provide a completed Securities Fraud Information Centre Records Request Form. A copy of this form can be obtained from our website www.msc.gov.mb.ca. Faxed copies are acceptable, fax no. 204-945-0330.
The fee for each officer, partner or adviser is $400. Fees will be collected by way of the NRD System.
The fees for officers, partners and advisers shall be reduced by 50% when the officer or partner of the adviser is concurrently registered as such under The Securities Act.
Copies of The Commodity Futures Act and Regulations may be obtained, at a cost, from:
Statutory Publications
200 Vaughan Street
Winnipeg, MB R3C 1T5
Telephone: (204) 945-3101
Fax: (204) 945-7172
If you have any questions regarding this matter, please contact Isilda Tavares, Registration Officer. (Direct Telephone: (204) 945-2560), Fax: (204) 945-0330, or via e-mail: Itavares@gov.mb.ca.
Dated: September, 2005