The Canadian Securities Administrators today released guidance intended to clarify the registration requirements that apply to mortgage investment entities (MIEs). The guidance follows parallel orders for exemptive relief for MIEs from the investment fund manager registration requirement and the adviser registration requirement, which were issued in August 2010. The exemptive relief was extended in all jurisdictions except B.C. until March 31, 2011. In B.C., exemptive relief was extended until June 30, 2011.
This notice clarifies the circumstances in which the investment fund manager registration requirement would apply to an MIE. While the guidance is generally harmonized, it should be noted that Alberta has taken a different approach and set out its own circumstances under which such registration would apply to an MIE whose principal jurisdiction is Alberta. Similarly British Columbia is taking a different approach with respect to dealer registration in certain circumstances, although all CSA jurisdictions will impose adviser registration on any person or company that advises a Pooled MIE (as defined in the notice) that is an investment fund about investing in or buying or selling mortgages or other securities if it is in the business of advising in securities.