News Release

Vancouver – Responding to recent national developments in securities regulatory reform, the B.C. Securities Commission has set aside a new firm-only registration system it had proposed as part of implementing new provincial securities legislation in November.

“We have decided that it is not practical to proceed at this time with the firm-only registration system,” said BCSC Chair Doug Hyndman.

“Quebec has now decided to join the National Registration Database system, making it a fully national system for registering securities firm representatives, and work is proceeding on a new passport system for registration. Implementing firm-only registration in B.C. would complicate these processes.”

The firm-only registration proposal was part of a comprehensive rewrite of B.C.’s securities laws designed to provide more effective protection of investors while reducing the compliance burden on securities market participants.

Hyndman said that firm-only registration is still a sound approach to improving securities firms’ accountability for the hiring and conduct of their sales representatives. However, feedback and studies suggest its greatest benefits would come about if the system were adopted nationally.

“Other securities regulatory bodies are not ready to adopt this system yet,” said Hyndman. “The work we have done will be useful when the time comes to pursue the idea again.”

Although the commission has dropped the firm-only registration proposal for now, B.C.’s new legislation contains other provisions that promote greater accountability of firms for the conduct of their representatives. These include the new Code of Conduct requirements and obligations for firms to share information on representatives who move to other firms.

B.C.’s new Securities Act was passed in the provincial legislature on May 11, 2004. The commission invited public comment on the accompanying rules through Aug. 23, 2004 and is now fine-tuning details in preparation for the new legislation to take effect, expected on November 15, 2004.

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