NIN 95/51 - New and Revised Forms (Registration) [NIN - Rescinded]
| Published Date: | 1995-12-15 |
|---|---|
| Effective Date: | 1995-12-14 |
Form 9 - Joint Regulatory Financial Questionnaire and Report
Form 9 is the form required under section 1 of the Securities Rules, with reference to the definition of "Joint Regulatory Financial Questionnaire and Report". Section 70(1) of the Securities Rules requires a broker, investment dealer, securities dealer, exchange contracts dealer or a person registered solely as an underwriter to file a Joint Regulatory Financial Questionnaire and Report relating to its latest financial year.
Form 9A - Report of Risk Adjusted Capital
Form 9A is the form required under section 70(2) of the Securities Rules. Section 70(2) of the Securities Rules requires a securities dealer, exchange contracts dealer or a person registered solely as an underwriter to file a report of risk adjusted capital in the required form monthly, during its initial period of registration, and thereafter for its first, second and third quarters. Sections 19(2) and 19(4) require securities dealers, exchange contracts dealers and underwriters to maintain positive risk adjusted capital, which may be calculated on Form 9A.
Form 62 - Report of Working Capital
Form 62 is the form required under sections 19(3), 19(5), 20(1), 20(2), 41(1)(c) and 70(3) of the Securities Rules. Sections 19(3), 19(5), 20(1) and 20(2) of the Securities Rules require mutual fund dealers, real estate securities dealers, scholarship plan dealers, portfolio managers and investment counsel to maintain, and calculate in accordance with the required form, certain minimum levels of working capital. Section 70(3) of the Securities Rules requires a mutual fund dealer to file a report of working capital in the required form monthly, during its initial period of registration, and thereafter for its first, second and third quarters. In addition, as a condition of registration, the executive director may require a real estate securities dealer, scholarship plan dealer, portfolio manager or investment counsel to file a Form 62.
Form 63 - Statement of Financial Condition
Form 63 is the form required under sections 50(1)(g)(i) and 70(4) of the Securities Rules. Section 50(1)(g)(i) of the Securities Rules requires all dealers, on request, to furnish a client or prospective client with a copy of the dealers most recently prepared statement of financial condition in the required form. Security issuers may, in the alternative, substitute a copy of their most recently prepared annual financial statements filed under section 145 of the Securities Rules. Section 70(4) of the Securities Rules requires dealers, other than security issuers, to file a statement of financial condition in the required form, annually, relating to the dealers most recent financial year. Section 50(3) of the Securities Rules requires a registered dealer to notify its clients, by way of their monthly statements or other acceptable means, that a statement of financial condition relating to the dealer is available upon request.
Form 64 - Risk Disclosure Document (Exchange Contracts)
Form 64 is the form of risk disclosure statement for brokers, investment dealers, exchange contracts dealers, portfolio managers and investment counsel required under section 35 of the Securities Rules. Section 35 of the Securities Rules requires a dealer or adviser, before opening a clients account, to furnish the client with a written statement, in the required form, for that type of registrant and account. Form 64 requires disclosure similar to that described, in general terms, in section 31(1) of the Commodity Contract Act, which section was never proclaimed in force. Effective January 1, 1996, brokers, investment dealers, exchange contracts dealers, portfolio managers and investment counsel will be required to furnish each prospective client with a copy of Form 64, prior to opening the clients account, where the proposed account will be used to trade in or, in the case of portfolio managers and investment counsel to advise on, exchange contracts. Brokers, investment dealers and portofolio managers that furnish prospective clients with a Form 65 ("Managed Accounts Disclosure Statement (Exchange Contracts) ") are not required to additionally furnish clients with a Form 64.
Brokers, investment dealers and exchange contracts dealers are permitted to trade in, and portfolio managers and investment counsel are permitted to advise on, exchange contracts only if expressly registered to do so.
Form 65 - Managed Accounts Disclosure Statement (Exchange Contracts)
Form 65 is the form of managed accounts disclosure statement for brokers, investment dealers and portfolio managers required under section 35 of the Securities Rules. Section 35 of the Securities Rules requires a dealer or adviser, before opening a clients account, to furnish the client with a written statement, in the required form, for that type of registrant and account. Form 65 requires disclosure similar to that currently required by Local Policy Statement 4-2. Effective January 1, 1996, brokers, investment dealers and portfolio managers will be required to furnish each prospective client with a copy of Form 65, prior to opening the clients account, where the proposed account will be used to manage a portfolio that includes exchange contracts.
No dealer or adviser is permitted to manage investment portfolios consisting of securities, exchange contracts or both unless the dealer or adviser is expressly registered under the Securities Act, or otherwise authorized by the Vancouver Stock Exchange ("VSE") or Investment Dealers Association of Canada ("IDA"), to do so.
Brokers and investment dealers are permitted to manage investment portfolios containing exchange contracts only if expressly registered as portfolio managers to manage portfolios containing exchange contracts, or expressly authorized pursuant to section 86 of the Securities Rules to manage portfolios containing exchange contracts, by the VSE or IDA. Similarly, portfolio managers are permitted to manage investment portfolios containing exchange contracts only if expressly registered to manage portfolios containing exchange contracts.
Form 7X - Addendum to Form 7
Form 7X is, in addition to Form 7 ("Application for Amendment of Registration as Dealer, Adviser or Underwriter"), a form required under sections 28(1) and 28(2) of the Securities Act. Form 7 was prescribed previously (NIN#95/1). Sections 28(1) and 28(2) of the Securities Act require a registered dealer, underwriter or adviser to file, in the required form, a notice of change in certain prescribed information. Form 7X sets out information, not included in Form 7, that will be required under sections 28(1) and 28(2) of the Securities Act. Effective January 1, 1996, dealers, underwriters and advisers will be required to file Form 7X, together with Form 7, whenever there is a change for which notification is required under section 28(1) or 28(2) of the Securities Act.
Review of Required Forms
The Superintendent is in the process of reviewing other required forms and will be amending them in 1996 to harmonize the forms with requirements of the Securities Act and Securities Rules, to remove references to the Commodity Contract Act and to reflect current practice. The Superintendent is also considering replacing the risk disclosure statements contained in Forms 64 and 65 with an internationally-agreed statement, which is being used in a number of jurisdictions.
Copies of New and Revised Forms
Copies of forms required in this notice may be requested from the Supervisor, Registration, for mailing or pick up (phone: Greater Vancouver 660-4833, all other regions of British Columbia 1-800-373-6393). There is no charge for these forms; however, only a reasonable number of copies will be distributed.
DATED at Vancouver, British Columbia, on December 14, 1995.
Dean E. Holley
Superintendent of Brokers
REF: Form 7X
Form 9
Form 9A
Form 62
Form 63
Form 64
Form 65
NIN#95/1