As the Exempt Market Dealers Association of Canada (EMDA) celebrates its
10th anniversary, one of its biggest and proudest moments was participation
and impact on the development of NI 31-103. As a participant in the Registration
Reform Working Group (the Working Group) and the Manager responsible for
the project at the Ontario Securities Commission (OSC), I have good memories
of meeting with members of the EMDA (then called the Limited Market Dealers
Association of Canada).
The EMDA was engaged in Registration Reform early on in the process. I remember our first meeting
at the OSC. It was a classic ‘don’t judge a book by its cover’ moment. This group didn’t look like the
typical investment industry association that the OSC was used to meeting. However, from that first
meeting, we on the Working Group realized this was a group of intelligent and well-seasoned dealers and
issuers in the exempt market.
The Chairman of the EMDA at that time was Morley Salmon. Morley was adamant that the EMDA
had to be heard and that regulators needed to better understand the exempt market. In that first meeting,
Morley reinforced the EMDA’s message to us that the exempt market needs regulation to bring credibility
and to rid the market of the bad apples.
I personally worked closely with the EMDA to understand the issues affecting the market and help
lead the working group away from some of its “wrong-headed” concepts. However, the EMDA really
proved its understanding of the market with an excellent comment letter on the second draft of NI
31-103. It was one of the most read comment letters by the members of the Working Group because we
learned about customary practices in the exempt market and the EMDA offered pragmatic solutions to
help us achieve our goals and avoid the wrong decisions.
However, the seminal moment came on November 27, 2007 at ‘Dialogue with the OSC’ when Morley
Salmon was invited to sit on a panel with Murray Taylor (CEO Investors Group), Marsha Gerhart (then
By David Gilkes, President of North Star Compliance & Regulatory Solutions Inc.
EMDA Vice Chair, and Former Manager, Registrant Regulation, the Ontario Securities Commission
The day the regulators
learned about the
A Flashback Moment as we celebrate the EMDA’s 10thanniversary