Exemption Orders (Discretionary)

LAKE SHORE ASSET MANAGEMENT, INC.


2001 BCSECCOM 217

COR#01/029


IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418

AND

IN THE MATTER OF LAKE SHORE ASSET MANAGEMENT, INC.

Exemption Order Under Section 48

[para 1]
WHEREAS Lake Shore Asset Management, Inc. has applied to the British Columbia Securities Commission for an order under section 48 of the Securities Act, R.S.B.C. 1996, c. 418 that Lake Shore and its advising employees, partners, directors and officers be exempt from the requirement of section 34(1)(c) of the Act;

[para 2]
AND WHEREAS Lake Shore has represented to the Commission that:

1. Lake Shore is incorporated under the laws of the State of Illinois;

2. Lake Shore is a commodity trading adviser registered with the Commodity Futures Trading Commission and a member of the National Futures Association in the United States, which permits Lake Shore to advise in respect of futures and forward contracts and options on futures and forward contracts in the United States;

3. Lake Shore proposes to act as an adviser to advisers and dealers registered under the Act (collectively the “registrants”), which advice is for the benefit of clients of the registrants;

4. Lake Shore proposes to enter into written agreements with the registrants which agreements will set out the obligations and duties of Lake Shore; and

5. Lake Shore will only provide advice in circumstances where:

(a) the registrant has agreed, in a document providing rights to the client of the registrant, to be responsible for any loss that arises out of the failure of Lake Shore to:
    (i) exercise the powers and discharge the duties of its office honestly, in good faith and in the best interests of the client; and
      (ii) exercise the degree of care, diligence and skill that a reasonably prudent person would exercise in the circumstances

      (the “standard of care”),
        in providing advice for the benefit of the client and this responsibility cannot be waived; and

        (b) the prospectus or other offering document discloses that the registrant is responsible for any loss that arises out of the failure of Lake Shore to meet the standard of care in providing advice for the benefit of the client of the registrant;

        [para 3]
        AND WHEREAS the Commission considers that to do so would not be prejudicial to the public interest;

        [para 4]
        IT IS ORDERED under section 48 of the Act that Lake Shore and any advising employee, partner, director or officer of Lake Shore, are exempt from the requirement of section 34(1)(c) of the Act in respect of the advice provided for the benefit of the client of a registrant, provided that:

        1. Lake Shore is registered as a commodity trading adviser with the Commodity Futures Trading Commission and is a member of the National Futures Association in the United States; and

        2. this order expires on February 19, 2003.

        [para 5]
        DATED February 19, 2001.





        Brent W. Aitken
        Member
        ©2024 British Columbia Securities Commission