News Release

Vancouver – Canada’s securities regulators should reduce and simplify the rules – and consider getting rid of prospectuses – to ease the regulatory burden facing the securities industry, says the B.C. Securities Commission.

"Many people are focused on making securities laws uniform across Canada to cut the cost and frustration industry faces in dealing with 13 different regulators,” said Brent Aitken, a commissioner leading the BCSC deregulation team.

“Uniform rules are important but the real problem is that industry faces too many rules that are too complex, too rigid and change too often.”

During the last 10 years, the volume of rules companies face has increased by more than 65 per cent. The Canadian Venture Exchange estimates its listed companies now pay on average $70,000 to comply with regulations – double what they paid five years ago. The costs have gone up even as Canada’s securities regulators have made their rules more uniform.

Under a streamlining effort leading up to its deregulation project, the BCSC significantly reduced its rulebook.

"This year’s rulebook is two-thirds the size of last year’s,” said Aitken.

Eliminating the prospectus requirement – traditionally a cornerstone of securities regulation – is the most significant of several reforms described in a discussion paper released today by Canada’s westernmost securities watchdog.

“We are looking forward to discussing these concepts with industry across Canada and our fellow regulators,” said Aitken.

The BCSC concepts include:
· Replacing prospectuses with a continuous market access system to give public companies immediate access to the market. Companies would only need to file a media release prior to issuing new securities.
· Giving investors new rights to sue market participants and others for fraud, misrepresentations and illegal insider trading.
· Replacing detailed registration rules with a code of conduct for securities firms.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province.