The Canadian Securities Administrators proposed to amendcustody requirements and other rules for dealers, advisers and fund managers.

The proposed amendments include enhanced custodyrequirements applicable to registered firms that are not members of theInvestment Industry Regulatory Organization of Canada or the Mutual FundDealers Association of Canada. The amendment is expected to address potentialintermediary risks when such firms are involved in the custody of client assets.

The CSA also seeks to clarify the activities that may beconducted under the exempt market dealer category of registration related totrades in prospectus-qualified securities. In addition, the group aims toexpand an existing exemption from the dealer registration requirement to allowregistered advisers to trade in the securities of affiliated investment funds.

The group seeks feedback on the proposed amendments. Thecomment period closes Oct. 5.