British Columbia Securities Commission Grants Exemption to Citadel Advisors LLC for Adviser Registration Requirement

The British Columbia Securities Commission (BCSC) has issued a decision granting an exemption to Citadel Advisors LLC (Filer) from the adviser registration requirement under section 34(b) of the Securities Act (R.S.B.C. 1996, c.418) for the Filer to provide advisory services to affiliated investment vehicles domiciled outside of Canada. The exemption is conditional on the Filer meeting certain requirements, including compliance with U.S. federal securities laws and U.S. derivatives laws, not soliciting or servicing clients resident or located in any jurisdiction of Canada, and filing a current information report with the BCSC.

Key Takeaways:

• The BCSC granted an exemption to Citadel Advisors LLC under section 48 of the Securities Act for the adviser registration requirement.
• The exemption allows the Filer to provide advisory services to affiliated investment vehicles domiciled outside of Canada.
• The Filer must comply with all applicable U.S. federal securities laws and U.S. derivatives laws, including commodity futures laws.
• The Filer will not solicit or service clients resident or located in any jurisdiction of Canada.
• The Filer must file a current information report with the BCSC before relying on the exemption, and update the report within 10 days of any change.
• The exemption will terminate on the earlier of five years after the date of the decision or the coming into force of a change in the Securities Legislation of British Columbia that exempts the Filer from the registration requirements.
• The Filer is registered with the Securities and Exchange Commission (SEC) as an investment adviser under the Investment Advisers Act of 1940.
• The Filer is a member of the National Futures Association (NFA) and is registered with the Commodity Futures and Trading Commission (CFTC).
• The Filer does not have employees and will rely on consultations with the Representatives to operate in the Jurisdiction.

Statistics:

• The Filer will only advise affiliated investment vehicles domiciled outside of Canada.
• The Filer will not provide services relating to the execution of trades for the affiliated investment vehicles within Canada.
• The affiliated investment vehicles are comprised of sophisticated institutional investors, with none of them including managed accounts or third-party funds.
• The Filer is required to file a current information report with the BCSC before relying on the exemption.

Sources:

• Section 48 of the Securities Act (British Columbia)
• Section 34(b) of the Securities Act (R.S.B.C. 1996, c.418)
• National Instrument 14-101 Definitions
• British Columbia Securities Commission
• Citadel Advisors LLC