BOR 95/06 - Continuing Relief From Certain Registration Requirements [Rescinded]

IN THE MATTER OF THE SECURITIES ACT S.B.C. 1985, c. 83

AND

IN THE MATTER OF CONTINUING RELIEF FROM CERTAIN REGISTRATION REQUIREMENTS

Order Under Section 33 of the Securities Act

WHEREAS the Lieutenant Governor in Council, by B.C. Reg. 479/95 ordered, among other things, that, effective January 1, 1996

(a) the Securities Regulation, B.C. Reg. 270/86, is repealed

(b) the regulation entitled the Securities Rules (the Rules), attached to B.C. Reg. 479/95, is made and is designated to be a rule of the Commission;

AND WHEREAS section 57(2) of the Rules contains detailed requirements for registrants dealing with clients free credit balances, as defined in section 57(1) of the Rules;

AND WHEREAS section 58 of the Rules contains detailed requirements for registrants holding subscriptions or prepayments for clients pending investment;

AND WHEREAS section 62 of the Rules contains detailed requirements for individuals to successfully rewrite a course or examination where the individual has previously surrendered registration pursuant to section 27 of the Act or has not previously been registered in British Columbia;

AND WHEREAS sections 77(1), (3)(a) and (4) of the Rules require every registrant to file, in the required form, a conflict of interest rules statement or, where permitted, a statement and undertaking;

AND WHEREAS the then-Superintendent of Brokers, by letters to the Vancouver Stock Exchange and Investment Dealers Association of Canada dated October 28, 1988 and November 18, 1988, exempted all brokers and investment dealers from sections 53 and 54 of the Securities Regulation, B.C. Reg. 270/86, which sections will be replaced, effective January 1, 1996, by sections 57(2) and 58 of the Rules;

AND WHEREAS the Superintendent is satisfied, upon review of the bylaws, rules or other regulatory instruments or policies established by the Vancouver Stock Exchange and the Investment Dealers Association of Canada, that there is sufficient protection for clients to warrant exempting all registered brokers and investment dealers from sections 57 (2) and 58 of the Rules;

AND WHEREAS the Superintendent is satisfied, upon review of proficiency requirements of the Vancouver Stock Exchange and the Investment Dealers Association of Canada, that there is sufficient protection for clients to warrant exempting all applicants for registration as partners, directors, officers or salespersons of brokers and investment dealers from section 62 of the Rules;

AND WHEREAS the Superintendent is satisfied that there is sufficient protection to clients if all registered brokers and investment dealers were to file conflict of interest rules statements or, where permitted, statements and undertakings with the Vancouver Stock Exchange or Investment Dealers Association of Canada, as applicable;

AND WHEREAS the Superintendent considers that it would not be prejudicial to the public interest to do so.

EFFECTIVE January 1, 1996, IT IS ORDERED under section 33 of the Act, that:

Clients' free credit balances

1. section 57(2) of the Rules does not apply to a registered broker or investment dealer provided that the broker or investment dealer follows the bylaws, rules or other regulatory instruments or policies established by the Vancouver Stock Exchange or the Investment Dealers Association of Canada, relating to clients' free credit balances;

Clients' subscriptions or prepayments

2. section 58 of the Rules does not apply to a registered broker or investment dealer provided that the broker or investment dealer follows the bylaws, rules or other regulatory instruments or policies established by the Vancouver Stock Exchange or the Investment Dealers Association of Canada, relating to clients' subscriptions or prepayments;

Rewriting industry examinations

3. section 62 of the Rules does not apply to an applicant for registration as partner, director, officer or salesperson of a registered broker or investment dealer provided that the partner, director, officer or salesperson follows the bylaws, rules or other regulatory instruments or policies established by the Vancouver Stock Exchange or the Investment Dealers Association of Canada, relating to rewriting industry examinations;

Conflict of interest rules statement

4. sections 77(1), (3)(a) and (4) of the Rules do not apply to a registered broker or investment dealer provided that the broker or investment dealer files, in the required form, a conflict of interest rules statement or, where permitted, a statement and undertaking, with the Vancouver Stock Exchange or Investment Dealers Association of Canada, as applicable.

DATED at Vancouver, British Columbia, on December 7, 1995.