The Ontario Securities Commission is proposing an amendment to the proficiency rules that would remove limits on the number of “restricted representatives” an investment dealer may employ.

Restricted representatives have their registration restricted to the sale of mutual funds. They are temporarily exempted from the normal proficiency requirements for investment dealer reps. The amendment is proposed because these limits are no longer needed, the OSC says.

The limitation was imposed because of concerns of the Canadian Securities Administrators that unlimited access to the restricted representative exemption might threaten the viability of the Mutual Fund Dealers Association of Canada, back when it was in the process of organizing. “This does not appear to be a concern at this time,” the OSC notes, adding, “There is no other reason to retain the limitation.”

The commission believes that the proposed amendment would remove an outdated restriction on investment dealers’ access to a useful exemption for certain newly hired registrants. There will be no new costs resulting from the amendment if it is adopted, it adds.

Comments can be made on the proposed amendments by May 31.