Official response from Equine Canada
Here is the response I received from Mike Gallagher, President of Equine Canada:
Thanks for your message to Mike Arbour which he has asked me to respond to.
I agree with you completely that rules should not be "clarified" when they are incorrect, they need to be rewritten. We do not have any problem with the intent and the objective of this rule but it does need to be written clearly using the words in Mrs. Lazarus' clarification statement. The way the rule is currently written is completely inaccurate and we will push the FEI to rewrite it properly.
This rule is simply to stop competitions that should be FEI or NF competitions that are running unsanctioned and competition against the existing system and using the resources of the existing system without contributing to the cost. There are many valid exceptions and you mention some of them in your message, but remember the only competitions that will fall in this category are shows that the NF has reported to the FEI as violating the system. The FEI has no way to monitor non sanctioned shows in Canada nor do they have the authority to do so.
This rule also only applies to International competitions which have more than 15 international competitors from at least 4 different countries.
I do not have any concerns about the rule however it must be rewritten and the most important part is that it only applies to competitions that have been reported by the NF - that way we are totally protected from any misapplication.
Thank you for your comments.