BOR 95/21 - Trades in Securities of Non Reporting Issuers [Rescinded]

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

AND

IN THE MATTER OF TRADES IN SECURITIES OF NON REPORTING ISSUERS

Order Under Section 159.4 of the Securities Act

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

(a) certain amendments to the Securities Act, S.B.C. 1985, c. 83 (the "Act") are brought into force,

(b) the Securities Regulation, B.C. Reg. 270/86 is repealed; and

(c) 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 the effect of section 140 of the Rules is that a trade in a security issued by an issuer that was not a reporting issuer at the time the security was issued is deemed to be a distribution unless the seller has complied with the seed share resale requirements of the Vancouver Stock Exchange or the issuer has been a reporting issuer for 12 months;

AND WHEREAS a person who has acquired, through a secondary market transaction or pursuant to a distribution outside of British Columbia, a security of an issuer that is not a reporting issuer in British Columbia would be required to hold the security indefinitely;

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 section 159.4 of the Act that section 140 of the Rules does not apply to a trade by a seller in a security of an issuer that was not a reporting issuer at the date of issue of the security, or an exchanged security issued in relation to that security, provided that

(a) the security, or the primary security in respect of which the exchanged security was issued, was not acquired by the seller in the course of a distribution in British Columbia, and

(b) the trade is not a distribution from the holdings of a control person.

DATED at Vancouver, British Columbia, on December 28, 1995.