Earlier today, the CSA announced the extension of the registration exemption for mortgage investment entities from the investment fund manager registration requirement and the adviser registration requirement until March 31, 2011. In British Columbia, the extension will run until June 30, 2011 in order to allow the BCSC time to conduct further analysis on the regulation of mortgage investment entities operating in the province. As we discussed in an earlier post, CSA members issued the initial parallel orders on August 20, which were to remain in effect until December 31, 2010 and which imposed certain prescribed conditions on the use of the exemption. Meanwhile, in Ontario, the additional condition that limits the exemption only to those licensed under the Mortgage Brokerages, Lenders and Administrators Act, 2006has also been carried forward under the extension order.
According to the CSA, "[w]hile significant analysis has been completed to date", the extension is necessary to allow CSA members "to complete their analysis and communicate the applicable requirements to the public with sufficient notice to allow mortgage investment entities to take the necessary steps to comply with those requirements."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
