BCN 2003/36 - Adoption of BC Instrument 81-507 Exemption from prospectus delivery requirement for pre-authorized purchase plans [BCN - Rescinded]
Effective September 12, 2003, the Commission has made BC Instrument 81-507 Exemption from prospectus delivery requirement for pre-authorized purchase plans.
Substance and purpose
The Commission recently granted relief on application to certain mutual funds and their related mutual fund dealer from the requirement to deliver an annual renewal prospectus to participants in pre-authorized mutual fund purchase plans. In this instrument, we give similar relief to dealers who distribute mutual funds to security holders in British Columbia under pre-authorized purchase plans. Dealers should consider whether in their circumstances they need to change any of their practices in order to use this blanket relief.
The relief is subject to a number of conditions. The dealer must send a notice to clients who already have pre-authorized purchase plans, setting out certain information and must ensure that new pre-authorized purchase plan participants receive similar information. All plan participants must be advised annually of how to request a copy of the prospectus and of their rights if there is a misrepresentation in the prospectus. This annual information may be included in the account statement or any other communication provided to a plan participant.
If you have questions about this instrument, please contact:
Senior Legal Counsel
Legal and Market Initiatives
British Columbia Securities Commission
(800) 373-6393 (in B.C. and Alberta)
September 12, 2003
Douglas M. Hyndman
Ref: BCI 81-507
This Notice may refer to other documents. These documents can be found at the B.C. Securities Commission public website at www.bcsc.bc.ca in the Commission Documents database or the Historical Documents database.