The Saskatchewan Financial Services Commission says that it will delay implementation of a proposed rule governing deposit agents, as it considers a couple of issues.

The SFSC notes that on February 13 it published a notice indicating that implementation of the rule would be delayed to October 1, to allow time for a review of the insurance requirements in the instrument. Commission staff surveyed deposit agents to get more information about the impact of these insurance requirements. It also engaged a consultant to provide advice on options for providing means of recourse to investors who have lost money because of a deposit agent’s conduct.

As a result, it finds it necessary to further delay implementation of the rule to permit the commission to review the consultant’s report and decide a course of action. It will not be implemented October 1. “This fall we will advise of what the commission has decided about the insurance requirement, and when the rule will be implemented,” it explains.

If there are material changes to the rule, it will be republished for comment. “In any event, we will provide enough notice so that deposit agents and financial institutions will have ample time to comply,” it says.

Due to the delay, it will revert to the 1993 Commission Business Practice Rules. Deposit agents should start filing again under these rules for year ends ending Dec. 31, 2006 or later, it says.