Nova Scotia Securities Commission staff issued a notice on Wednesday setting forth answers to questions frequently asked by individual registrants who engage or are considering engaging in an employment or business activity outside that permitted by their registration.

The purpose of the notice, entitled No. 34-701 “Certain Duties of Registrants Engaging or Intending to Engage in a Business or Employment Activity Outside That of the Sponsoring Firm” , is to assist individual registrants and those responsible for discharging the regulatory duties of sponsoring firms to better understand what is required of them in relation to certain activities outside their principal business, pursuant to the requirements of Nova Scotia’s Securities Act and the General Securities Rules made under the Act.

“In some cases certain registrants may be carrying on activities outside that permitted by their registration, without the explicit approval of the Director of Securities (Director) in writing, as required by Nova Scotia securities laws,” says the notice.

The notice adds that individual registrants in Nova Scotia who are employed to act on behalf of sponsoring firms that are members of a recognized self regulatory organization, either the Investment Dealers Association of Canada or the Mutual Fund Dealers Association, are reminded that they are required to comply also with the relevant by-laws, rules or regulations of the IDA or MFDA to the extent that such by-laws, rules or regulations are not inconsistent with Nova Scotia securities laws.

The notice indicates that as part of the Canadian Securities Administrators’ Registration Reform Project, a proposal for a national registration rule will likely be released by the end of 2006. When implemented, this rule will eliminate or reduce the need for local rules and establish a more harmonized approach for avoiding client confusion, conflicts of interest and any detrimental impact on proficiency where an individual registrant is dually employed or engages in outside business activities. As such, NSSC staff intend to keep this notice under review to determine whether it is still required in whole or in part.