The Securities Commission granted Fidelity Clearing Canada ULC (the Filer) time-limited relief from the prospectus requirement and trade reporting requirements to distribute Crypto Contracts to permitted clients. This decision revokes a prior decision that was about to expire and is subject to conditions including disclosure and reporting requirements. The relief is valid for two years and aims to foster innovative businesses in Canada. The decision is based on the specific facts and circumstances of the Filer and should not be considered a precedent for other filers.
Relevant laws and regulations include:
– Securities Act, R.S.O. 1990, c. S.5, as amended, ss. 1(1), 53 & 74
– Multilateral Instrument 11-102 Passport System, s. 4.7
– OSC Rule 91-506 Derivatives: Product Determination, ss. 2 & 4
– OSC Rule 91-507 Trade Repositories and Derivatives Data Reporting, Part 3
The Filer must comply with conditions such as maintaining registration as an investment dealer, adhering to CIRO rules, using an acceptable third-party custodian, and providing detailed reporting to the Principal Regulator. The relief will expire two years from the date of the decision.