BOR 96/14 - Further Transitional Relief Related to Proficiency Requirements [Rescinded]

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

AND

IN THE MATTER OF FURTHER TRANSITIONAL RELIEF RELATED TO PROFICIENCY REQUIREMENTS

Order Under Section 33 of the Act

WHEREAS certain dealers, including securities dealers and mutual fund dealers, may carry on business in one or more branch offices;

AND WHEREAS effective January 1, 1996, section 66(1) of the Securities Rules, B.C. Reg. 479/95 (the "Rules") requires a dealer that carries on business in a branch office to employ, with the approval of the Executive Director, a branch manager or, if the branch is situated in a branch of a financial institution, an administration officer to ensure that the branch complies with the Securities Act, S.B.C. 1985, c. 83 (the "Act"), the Rules and other regulations;

AND WHEREAS, pursuant to section 66(2) of the Rules, where fewer than four registered individuals carry on business in a branch office of a dealer, the dealer is not required to comply with section 66(1) of the Act if the Executive Director is satisfied that a branch manager or an administration officer in another branch office is able to ensure that the branch office without a branch manager or an administration officer complies with the Act, the Rules and other regulations;

AND WHEREAS effective January 1, 1996, section 60 of the Rules and Local Policy Statement 3-22 dated December 7, 1995 ("LPS 3-22") require a branch manager and an administration officer of a dealer to have successfully completed the courses and examinations and have the experience the Executive Director requires (the "Proficiency Requirements");

AND WHEREAS the Proficiency Requirements for branch managers and administration officers of certain dealers, including securities dealers and mutual fund dealers, include certain courses and examinations not previously required;

AND WHEREAS BOR#95/8 provides transitional relief until October 1, 1996 to allow dealers a period of time to adjust to the Proficiency Requirements, provided that a branch manager or an administration officer of a dealer complies with the proficiency requirements, if any, set out in the Securities Regulation, B.C. Reg. 270/86 (the "Old Regulation") and Interim Local Policy Statement 3-22 dated February 10, 1989 ("Interim LPS 3-22");

AND WHEREAS the Commission has determined that it would be appropriate to provide further transitional relief to that provided in BOR#95/8 that would allow securities dealers and mutual fund dealers a further period of time to adjust to the Proficiency Requirements, provided that certain additional requirements are met;

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

IT IS ORDERED, under section 33 of the Act, that the Proficiency Requirements do not apply to a securities dealer or mutual fund dealer, or to an individual employed as a branch manager or an administration officer by a securities dealer or mutual fund dealer, until January 1, 1997 provided that

(a) a branch manager or administration officer of a securities dealer or mutual fund dealer has successfully completed the requirements, if any, set out in the Old Regulation and Interim LPS 3-22 that relate to courses, examinations and experience;

(b) on or before October 1, 1996, a securities dealer or mutual fund dealer files a list of its branch offices, setting out for each branch office

(i) the address and telephone number of the branch office,

(ii) the names of the registered individuals carrying on business in the branch office,

(iii) the name of the branch manager or the administration officer who will ensure that the branch office referred to in (i) complies with the Act, the Rules and other regulations, and

(iv) where the branch manager or the administration officer referred to in (iii) carries on business in an office or branch office other than the branch office referred to in (i), the address and telephone number of the office or branch office where the branch manager or the administration officer carries on business;

and

(c) on or before January 1, 1997

(i) a branch manager or administration officer of a securities dealer has successfully completed

(A) the Canadian Securities Course (CSI),

(B) the Conduct and Practices Handbook Exam (CSI), and

(C) either the Branch Managers Qualifying Exam (CSI) or the Partners, Directors & Senior Officers Qualifying Exam (CSI);

(ii) a branch manager or administration officer of a mutual fund dealer has successfully completed

(A) either the Canadian Securities Course (CSI), the Canadian Investment Funds Course (IFIC), or the Investment Funds in Canada Course (ICB), and

(B) either the Branch Managers' Examination (IFIC), the Officers', Partners' or Directors' Examination (IFIC), the Branch Managers Qualifying Exam (CSI), or the Partners, Directors & Senior Officers Qualifying Exam (CSI)

as the courses or examinations referred to in (i) and (ii) are defined in LPS 3-22 except that, for the purposes of a branch manager or administration officer of a mutual fund dealer, the Branch Managers Qualifying Exam (CSI) referred to in (ii)(B) may be amended to exclude the portion of its syllabus dealing with options.

DATED at Vancouver, British Columbia, on August 7, 1996.

Douglas M. Hyndman
Chair

REF: BOR#95/8