Conditions of Registration and Rule for U.S. Over-the-Counter Markets

The BC Securities Commission (BCSC) applies conditions of registration to investment dealers that trade in U.S. over-the-counter markets through an office in British Columbia (“the U.S. OTC conditions”). The U.S. OTC conditions are a key part of the BCSC’s plan to deter and prevent abusive junior market activities.

The plan is outlined in the June 2007 notice BC Notice 2007/24 BCSC Response to Abusive Practices in British Columbia Involving US Over-the-Counter Markets. The U.S. OTC conditions came into effect on June 13, 2008. Amended U.S. OTC conditions came into effect on October 28, 2009. In 2014, they were renewed without an expiry date.

In addition to conditions of registration, Multilateral Instrument 51-105 Issuers Quoted in the U.S. Over-the-Counter Markets (MI 51-105) regulates issuers whose securities have received a ticker symbol for use on over-the-counter markets in the U.S. The Requirements for Issuers Quoted in U.S. OTC Markets page explains the context for MI 51-105 and provides links to additional instruments, including forms and policy.

More information about the U.S. OTC conditions and related policy can be found in:

• Conditions of Registration
• BCIN 33-705 - Notice of Amended BC Interpretation Note 33-705 Conditions of Registration for Investment Dealers with a BC Office that Trade in the U.S. Over-the-Counter Markets

The U.S. OTC conditions apply to registered investment dealers with an office in British Columbia, unless the firm has filed an undertaking in Form A to not trade securities of an OTC issuer through a British Columbia office.

Under the U.S. OTC conditions, investments dealers that trade in the U.S. OTC markets through a British Columbia office must record prescribed information and report in Form B. The form records the information required under conditions 3(a), (b), and (d) and must be filed within 30 days of the end of each calendar quarter. The Commission encourages investment dealers to file Form B electronically through BCSC eServices.

Forms

• OTC Form A
• OTC Form B

Prior Publications

• BCN 2014/12 - Notice of Amended BC Interpretation Note 33-705 Conditions of Registration for Investment Dealers with a BC Office that Trade in the U.S. Over-the-Counter Markets
• BCN 2013/09 - Notice and Request for Comment - Proposed Amendments to Conditions of Registration for Investment Dealers with a BC Office that Trade in the U.S. Over-the-Counter Markets
• BCN 2012/20 - Notice and Request for Comment - Proposed Changes to Conditions of Registration - Investment Dealers with A BC Office that Trade in the U.S. Over - the - Counter Markets and Imposition of an Order of the Executive Director
• BCN 2011/36 Notice of Amended Interpretation Note 33-705 Conditions of Registration for Investment Dealers with a BC Office that Trade in U.S. Over-the-Counter Markets [BCN], published January 3, 2012.
• BCN 2009/29 Notice of Amended Conditions of Registration for Investment Dealers with a BC Office that Trade in the U.S. Over-the-Counter Markets [BCN], published October 30, 2009.
• BCN 2008/24 Notice of Conditions of Registration for Investment Dealers that Trade in the U.S. Over-the-Counter Markets, published May 13, 2008.
• BCN2007/33 Notice and Request for Comment Proposed British Columbia Instrument 51-509 Issuers Quoted in the U.S. Over-the-Counter Markets Proposed Conditions of Registration for Investment Dealers that Trade in the U.S. Over-the-Counter Markets, published October 29, 2007.