com_20080529_31-103_shadowitzr.pdf (application/pdf Object)

… We are concerned that the current exemption for short term debt has not been continued in the Instrument. The removal of this exemption would preclude banks and other non-registered firms from continuing to trade in products such as commercial paper without registration, absent any provincial exemption. This would be a significant change to the status quo and a step-back from harmonization.
While we are pleased to see that the exemption for short-term debt will be continued in Ontario under Ontario Securities Commission Rule 45-501 Ontario Prospectus and Registration Exemptions (OSC Rule 45-501) we are disappointed to see that this exemption will not be continued across Canada.

com_20080529_31-103_shadowitzr.pdf (application/pdf Object)

… As the current draft of the Instrument can now be read in conjunction with a proposed draft of National Instrument 45-106 Prospectus and Registration Exemptions (NI 45-106) which anticipates the coming-into-effect of the business trigger we reiterate our concern that, as drafted, the elimination of certain registration exemptions will negatively impact banks and other market participants from carrying on certain activities that have been conducted by them for decades under existing registration exemptions.

com_20080529_31-103_shadowitzr.pdf (application/pdf Object)

 We note however that although the CSA has stated that it will not alter the status quo with respect to the regulation of banks we have discovered some areas where the Instrument may impact banks’ ability to continue to carry on their activities as they do today. We have attempted to itemize some of these concerns below. Our concern is that all of these areas may not be identified and resolved prior to the Instrument coming into effect. In order to avoid this we strongly recommend the CSA include a parallel exemption for financial institutions as is found in section 35.1 of the draft amendments to the Ontario Securities Act.

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