Exemption Orders (Discretionary)

FXVOLRESEARCH LIMITED

2002 BCSECCOM 330.pdf
Click on the Adobe icon to launch the Acrobat Reader

2002 BCSECCOM 330







COR#01/105

ORDER UNDER SECTION 48 OF THE SECURITIES ACT, R.S.B.C. 1996, c. 418

FXVOLRESEARCH LIMITED

(a)
Background
1. FxVolResearch Limited applied for an exemption from the adviser registration requirements of section 34(1)(c) of the Act to provide investment services over the Internet;

[para 2]
Representations
2. FxVolResearch represents that:

2.1. it is incorporated under the laws of British Columbia with its registered office located in Vancouver, British Columbia;

2.2. it is not a reporting issuer, and up to the effective date of this order did not carry on any business or provided any securities-related advice to any person;

2.3. it will provide advice respecting foreign currency exchange and futures contracts to sophisticated persons through a web site on the Internet (the Services) which will be restricted to registered subscribers by the use of passwords;

2.4. prior to becoming a registered subscriber and being granted access to the Services, a user will be required to provide FxVolResearch with specific information including the user’s identity, residential address and jurisdiction of residence;

2.5. a person resident or located in British Columbia may only access the Services if the person is an Accredited Investor under the following definition:
2.5.1 Accredited Investormeans
(a) a Canadian financial institution, or an authorized foreign bank listed in Schedule III of the Bank Act (Canada),
(b) the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada),
(c) an association under the Cooperative Credit Associations Act (Canada) located in Canada,
          (d) a subsidiary of any person or company referred to in paragraphs (a) to (c), where the person or company owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary,
          (e) a person or company registered under the securities legislation, or under the securities legislation of another jurisdiction of Canada, as an adviser or dealer, other than a limited market dealer registered under the Securities Act (Ontario),
          (f) an individual registered or formerly registered under the securities legislation, or under the securities legislation of another jurisdiction of Canada, as a representative of a person or company referred to in paragraph (e),
          (g) the government of Canada or a province, or any crown corporation or agency of the government of Canada or a province,
          (h) a municipality, public board or commission in Canada,
          (i) any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government,
          (j) a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada) or a provincial pension commission or similar regulatory authority,
          (k) a registered charity under the Income Tax Act (Canada),
          (l) an individual who, either alone or jointly with a spouse, beneficially owns, directly or indirectly, financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000,
          (m) an individual whose net income before taxes exceeded $200,000 in each of the two most recent years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent years and who, in either case, reasonably expects to exceed that net income level in the current year,
          (n) a corporation, limited partnership, limited liability partnership, trust or estate, other than a mutual fund or non-redeemable investment fund, that had net assets of at least $5,000,000 as shown on its most recently prepared financial statements,
          (o) a mutual fund or non-redeemable investment fund that, in the local jurisdiction, distributes its securities only to persons or companies that are accredited investors,
          (p) a mutual fund or non-redeemable investment fund that, in the local jurisdiction, distributes its securities under a prospectus for which the regulator has issued a receipt,
          (q) a fully managed account if it is acquiring a security that is not a security of a mutual fund or non-redeemable investment fund,
          (r) an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) through (e) in form and function, or
          (s) a person or company in respect of which all of the owners of interests, direct or indirect, legal or beneficial, are persons that are accredited investors.
      financial assets means cash and securities.
      related liabilities means
(b) liabilities incurred or assumed for the purpose of financing the acquisition or ownership of financial assets, or
(c) liabilities that are secured by financial assets.

2.6 the registration page of its web site will include:
2.6.1 an obvious disclaimer which states that a person resident or located in British Columbia may only access the Services if they are an Accredited Investor; and
2.6.2 a link to the qualifications for an Accredited Investor;

[para 3]
Order
3. Because it is not prejudicial to the public interest, it is ordered, effective August 2, 2001, under section 48 of the Act that:

3.1. FxVolResearch and its directors, officers and employees are exempt from the requirements of section 34(1)(c) of the Act in connection with supplying the Services, provided that:
3.1.1 a person resident or located in British Columbia is only permitted access to the Services if the person is an Accredited Investor; and
3.1.2 FxVolResearch complies with all applicable securities and exchange contract laws, regulations and policies.

[para 4]
DATED September 20, 2001.




Joyce C. Maykut, Q.C.
Vice Chair

©2024 British Columbia Securities Commission