News Release

VICTORIA – Legislation introduced today will help revitalize economic and investment growth in British Columbia while also improving investor protection, Minister of Competition, Science and Enterprise Rick Thorpe said.

“The proposed legislative changes reflect the government’s commitment to remove unnecessary regulation and make British Columbia a more attractive place to invest,” Thorpe said. “Reducing regulation cuts the costs of raising capital for businesses and gives
British Columbians a greater range of investment choices in a more competitive marketplace.”

The securities amendment act 2002 introduces investor protection measures that complement the easier access to capital provided by the new capital-raising exemptions rule recently adopted by the British Columbia Securities Commission. For example, the act prohibits anyone selling or promoting a security from using high-pressure sales tactics or imposing unfair terms or conditions.

“The new rules we adopted for raising capital provide new opportunities for investors and businesses,” said Doug Hyndman, chair of the commission. “These legislative amendments support the new rules and improve British Columbia’s competitiveness.”

The legislation provides a framework for recognizing and regulating non-traditional trading markets, such as automated trading systems, which adds to the range of market choices for investors. It also harmonizes legislation in British Columbia with that in Alberta and Ontario. This is expected to help securities issuers by cutting the costs of complying with differing sets of legislation, and it will also reduce costs and provide more investment choices for British Columbians.

The legislation increases the maximum penalties that can be imposed for market misconduct, and lays the foundation for greater sharing of information between British Columbia and other provinces through a proposed national registration database.

“We are working in partnership with other provinces so we are able to respond more effectively to the needs of investors and the changing realities of the marketplace,” Thorpe said.

This news release is available at www.cse.gov.bc.ca/publicinfo/newsreleases/default.htm [link no longer operational] online.