BOR 96/10 - Further Relief Respecting Audit Committee Review and Board of Directors Approval of Interim Financial Statements [Rescinded]

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

AND

IN THE MATTER OF FURTHER RELIEF RESPECTING AUDIT COMMITTEE REVIEW AND BOARD OF DIRECTORS APPROVAL OF INTERIM FINANCIAL STATEMENTS

Order Under Section 3(8) of the Securities Rules

WHEREAS the Lieutenant Governor in Council, by B.C. Reg. 479/95, ordered, among other things, effective January 1, 1996, that the regulation entitled the "Securities Rules" (the "Rules") was made and was designated to be a rule of the Commission;

AND WHEREAS the Rules have added a number of new requirements applicable to all financial statements filed with the Commission;

AND WHEREAS section 3(12) of the Rules requires an issuer that is required to have an audit committee to have that audit committee review all financial statements filed with the Commission;

AND WHEREAS section 3(13) of the Rules requires an issuer to have its board of directors, or persons holding similar positions with reporting issuers that are not corporations, approve all financial statements filed with the Commission;

AND WHEREAS the requirements would impose a significant change from current practice for many reporting issuers;

AND WHEREAS the requirement for both audit committee review and board of directors approval for interim financial statements filed under section 144 of the Rules would signficantly increase the costs for companies without corresponding benefits to investors;

AND WHEREAS, in the interests of harmonization of requirements across Canada, the Commission plans to discuss with other Canadian securities regulatory authorities a national approach to audit committee review of interim financial statements filed under section 144 of the Rules;

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

IT IS ORDERED, effective April 30, 1996, under section 3(8) of the Rules that sections 3(12) and 3(13) of the Rules do not apply to interim financial statements filed under section 144 of the Rules.

DATED at Vancouver, British Columbia, on May 2, 1996.