Securities Law

BCN 2003/51 - BCI 33-513 - Exemption from financial statement, capital and bonding requirements for MFDA members [BCN - Rescinded]

Published Date: 2003-11-26
Effective Date: 2003-11-25

The Commission has granted exemptions from certain sections of the Securities Rules for registrants that are members of the Mutual Fund Dealers Association (MFDA).

Substance and purpose of the BCI
As a result of an amendment to section 6 of the Securities Rules made in 2001, mutual fund dealers in British Columbia are required to be members of the MFDA. The MFDA has established capital, bonding and financial reporting requirements for its members. In some cases, these requirements, while similar, differ from the requirements in Part 5 of the Securities Rules. At present, MFDA members must file financial reports with both the MFDA and the Commission, and must comply with both sets of requirements.

To eliminate the needless duplication of requirements, the Commission has made BC Instrument 33-513 to exempt MFDA members from the following sections of the Securities Rules:

Section Requirement
19(3) and (5) Working capital requirement
21Bonding requirement
41(1)(c) and (2)Monthly capital record
69Annual financial statements
70(3) to (7)Other financial reports


A minor change has been made to BC Policy 31-601 to reflect the exemption in BCI 33-513.

Mutual fund dealers who are not members of the MFDA must still comply with the requirements listed above.

Questions
You may refer questions to:

Denise Duifhuis
Senior Legal Counsel
Legal and Market Initiatives
British Columbia Securities Commission
(604) 899-6792
(800) 373-6393 (in B.C. and Alberta)
dduifhuis@bcsc.bc.ca


November 25, 2003

 


Douglas M. Hyndman
Chair

Ref: BCI 33-511
 BCP 31-601

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be found at the B.C. Securities Commission public website at www.bcsc.bc.ca in the Commission Documents database or the Historical Documents database.