OZ, my problem is similar and I think we are pretty close in our mutual confusion.
Mine goes to the following:
c. must comply with ATC instructions in accordance with CAR 100
if such instructions are issued.
Is the controller responsible for separation in Class E+? - it's not clear. What happens if the controller just decides it's Class E and gives traffic and there's a prang?
Can he/she decide just to let it run? Or is there an absolute responsibility to issue 'ATC instructions?'
I just don't know.