The Securities Commission granted Fidelity Clearing Canada ULC (the Filer) time-limited relief from prospectus and trade reporting requirements to distribute Crypto Contracts to permitted clients. This relief, which revokes a prior decision, is subject to conditions including disclosure and reporting requirements and will expire in two years. The decision aims to foster innovative businesses in Canada and is based on specific facts and circumstances, without setting a precedent for other filers.
Key Facts:
– The Filer is registered as an investment dealer and offers services to institutional clients, including custody of Crypto Assets and trading of Crypto Contracts.
– The Filer uses Fidelity Digital Asset Services, LLC (FDAS) as a foreign custodian and may use additional liquidity providers.
– The Filer ensures compliance with regulatory requirements and provides detailed risk and asset statements to clients.
Relevant Laws and Regulations:
– Securities Act, R.S.O. 1990, c. S.5, as amended, sections 1(1), 53, and 74.
– Multilateral Instrument 11-102 Passport System, section 4.7.
– OSC Rule 91-506 Derivatives: Product Determination, sections 2 and 4.
– OSC Rule 91-507 Trade Repositories and Derivatives Data Reporting, Part 3.
Outcome:
– Relief granted with conditions including maintaining registration, providing detailed client disclosures, using acceptable custodians, and adhering to reporting requirements.
– The decision will expire in two years and is not a precedent for other cases.