NIN 98/69 - Calls to Persons at Their Places of Residence ("Cold Calling") [NIN - Rescinded]

Staff of the Commission is publishing this notice to provide further guidance to registrants and others regarding calls to persons at their homes.

Section 49 of the Securities Act governs calls to persons at their places of residence. This section addresses both telephone solicitations, and attendance made in person, by all persons, including all categories of registrants - employees, officers, dirsectors, partners - as well as their agents.

Registrants and others are reminded that such calls are prohibited except in the very limited and specific circumstances set out in the Act. This prohibition cannot be circumvented by using an agent located outside British Columbia to make "cold calls" to B.C. residents.

The impetus for this notice is complaints that the B.C. Securities Commission has received. In one instance, a registrant contracted with agents outside of British Columbia to contact persons in B.C. and try to gain new clients for the registrant. Some of the calls made by the agents were to persons in B.C. at their residences. In another instance, salespersons selling scholarship plans made telephone solicitations at the residences of families following the birth of a child.

Registrants and others are reminded that failure to abide by the "cold calling" prohibitions in section 49 of the Act could result in enforcement action being taken by the Commission. Accordingly, registrants and other persons considering "cold calling" should carefully read section 49 of the Act. Registrants should also carefully review their employer’s compliance manuals.

Commission staff suggest that registrants bring any type of promotion, or other attempts to solicit new clients, to the attention of their employers’ compliance departments, for review.

DATED at Vancouver, British Columbia, on December 3, 1998

Michael J. Watson
A/Executive Director