BCN 2005/33 - BC Instrument 33-515 - Exemption from financial statement, capital, and bonding requirements for IDA members [BCN - Lapsed]
- 33-515 - Exemption from financial statement, capital, and bonding requirements for IDA members [BCI - Rescinded]
The Commission has granted exemptions from certain sections of the Securities Rules for members of the Investment Dealers Association (IDA).
Substance and purpose of the BCI
Investment dealers and underwriters in British Columbia must be members of the IDA. The IDA has established capital, bonding, and financial reporting requirements for its members. In some cases, these requirements differ from the requirements in Part 5 of the Securities Rules.
It is Commission staff’s practice to waive the capital, bonding, and financial reporting requirements in Part 5 of the Securities Rules for IDA members that comply with relevant IDA requirements and to permit IDA members to file required reports with the IDA instead of the BCSC. BCI 33-515 formalizes BCSC staff practice and eliminates needless duplication of requirements.
The BCI exempts IDA members from the following sections of the Securities Rules:
19(1) and (2)
Working capital requirement
21 and 22
41(1)(b) and (2)
Monthly capital record
Annual financial statements
70(1) and (2)
Other financial reports
Members of the Mutual Fund Dealers Association (MFDA) were granted similar relief in BCI 33-513. Registrants that are not members of the MFDA or IDA must still comply with the applicable financial statement, capital and bonding requirements set out in the Securities Rules.
Your may refer questions to:
Senior Legal Counsel
Capital Markets Regulation
British Columbia Securities Commission
1-800-373-6393 (in BC and Alberta)
June 21, 2005
L.E. Evans, C.A.
Director, Capital Markets Regulation
Ref: BCI 33-515