BCN 2008/15 - Publication for comment of proposed amendments to Securities Rules relating to Bill 28 [BCN - Lapsed]
The Commission is publishing for comment proposed amendments to the Securities Rules relating to the secondary market liability provisions awaiting proclamation in the Securities Amendment Act, 2007 (Bill 28).
Bill 28 received Royal Assent on November 22, 2007. The government has not yet proclaimed a number of provisions in Bill 28 in force because rules are necessary to give effect to the provisions in the Act. This proposal includes the rules for some of these provisions. We are working with other provinces through the Canadian Securities Administrators on uniform rules for the other provisions of Bill 28.
Bill 28 provides new statutory remedies for investors in the secondary market who suffer damages from misleading disclosure. These rule amendments are required so that the government can proclaim these provisions of Bill 28. We will be asking the government to proclaim related consequential amendments at the same time as these provisions.
Summary of Proposed Rule Amendments
The proposed rule amendments:
- define the following terms used but not defined in the new secondary market liability provisions: equity security, market capitalization, principal market and trading price.
- prescribe the following transactions as ones for which investors can sue for damages under the new remedies: sales of securities by an issuer's control person, and acquisitions of securities under an exemption from take-over bid or issuer bid requirements.
Bill 28 provides new statutory remedies for investors in the secondary market who suffer damages from misleading disclosure. This new secondary market civil liability framework is the same framework that is in effect in Ontario, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick and Nova Scotia.
We harmonized the proposed rule amendments with the similar rules in effect in other jurisdictions.
You can deliver comments on the proposed rule amendments in hard copy, or by fax or e-mail by May 11, 2008 to:
British Columbia Securities Commission
P.O. Box 10142, Pacific Centre
701 West Georgia Street
Vancouver BC V7Y 1L2
March 11, 2008
Douglas M. Hyndman
Ref: Securities Amendment Act, 2007 (Bill 28)
This Notice may refer to other documents. These documents can be found at the B.C. Securities Commission public website atwww.bcsc.bc.ca in the section Securities Law & Policy: Policies & Instruments.