Sprott Securities Inc., GMP Securities Ltd. and GMP Private Client Ltd. have each received regulatory relief to allow bulk transfers of their employees to allow the firms to convert to income trust structures.

GMP converted to an income trust, effective Dec. 1.

The latest OSC bulletin notes that Sprott is heading the same way. It says that Sprott LP is a limited partnership that has applied for membership in the IDA and for registration as an investment dealer. Sprott LP will be owned indirectly by an income trust which will operate under the name “Sprott Securities Income Trust”.

Shareholders of Sprott Inc. will sell their shares to the income trust. The trust will sell units to former shareholders and other members of the public (including associates of former Sprott shareholders) pursuant to an offering memorandum. The restructuring arrangement is to be effective on or about December 31.

The regulators granted relief from several filing requirements to facilitate the transfer and reorganization. “Given the multiple business locations and the large number of employees of Sprott Inc. it would be very difficult and time-consuming to transfer each individual to Sprott L.P., as per the requirements set out in the legislation,” the bulletin notes. “Moreover, it is imperative that the transfer of the relevant individuals occur on the same date, in order to ensure that there is no break in registration. It would be unduly onerous to transfer each individual associated with the filers in accordance with the requirements set out in the legislation having regard to the fact that there should be no change to their employment or responsibilities and each individual will be transferred under the same category.”

Similar relief was granted to GMP Securities Ltd. as part of its conversion into an income trust.