BOR 95/16 - Trades of Negotiable Promissory Notes or Commercial Paper to Individuals [Rescinded]

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

AND

IN THE MATTER OF TRADES OF NEGOTIABLE PROMISSORY NOTES OR COMMERCIAL PAPER TO INDIVIDUALS

Order Under Sections 33 and 59 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, certain amendments to the Securities Act, S.B.C. 1985, c. 83 (the "Act"), are brought into force;

AND WHEREAS, effective January 1, 1996, section 32(d) of the Act is amended to limit the trading exemption set out in section 32(d) of the Act to trades where the purchaser is not an individual;

AND WHEREAS, effective January 1, 1996, section 32 of the Act is further amended to clarify that the exemptions set out in section 32 of the Act provide only an exemption from the requirement under section 20(1)(a) of the Act to register to trade and do not provide an exemption from the requirement under section 20(1)(c) of the Act to register to act as an adviser;

AND WHEREAS it is expedient to provide an exemption from sections 20(1)(a) and (c) and 42 of the Act for trading in, and advising on, certain negotiable promissory notes or commercial paper to trades, or advice, where the purchaser, or the person receiving the advice, is an individual;

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

EFFECTIVE January 1, 1996, IT IS ORDERED, under sections 33 and 59 of the Act that sections 20(1)(a) and (c) and 42 of the Act do not apply to trading in, or advising on, negotiable promissory notes or commercial paper maturing not more than twelve months from the date of issue where the purchaser, or the person receiving the advice, is an individual, provided that

(a) each note or commercial paper is not convertible or exchangeable into or accompanied by a right to purchase another security other than a security described in section 32 of the Act,

(b) each note or commercial paper has a credit rating from one of the rating agencies set out below that is equal to or higher than the level indicated below:

Rating Agency Rating

Canadian Bond Rating Service Inc. A-1 (low)

Dominion Bond Rating Services Limited R-1-L

Moodys Investors Services, Inc. P-1

Standard & Poors Corporation A-1,

(c) the person trading, or acting as an adviser, does not know or ought not reasonably to know that there has been an announcement by the rating agency that the rating may be down-graded to a level below the level indicated in paragraph (b), and

(d) each note or commercial paper has a denomination or principal amount of not less than $50,000.

DATED at Vancouver, British Columbia, on December 21, 1995.