BCN 2009/36 - Notice of Adoption as an urgent rule, and of Publication for Comment, of BC Instrument 81-513 Self-Dealing and related consequential amendments [BCN - Lapsed]

Concurrently Published:

• 11-102 - Passport System [MI - Rescinded]
• 13-601 - Required Forms [BCP - Rescinded]
• 81-107 - Independent Review Committee for Investment Funds [NI - Rescinded]]
• 81-513 - Self-Dealing [BCI - Rescinded]
• 81-903F - Report Required under Section 9 of BC Instrument 81-513 Self-Dealing [F]

Adoption of BC Instrument 81-513
On September 28, 2009, the Legislature repealed sections 120-122, 124, 126 and 129 of the Securities Act. Effective December 23, 2009, the Commission adopted these requirements in BC Instrument 81-513 Self-Dealing, with two exceptions

1. Section 124(b) is not in the rule because the commission can provide relief under section 130 of the Act
2. Definitions in section 120(1) referred to in section 127 are not in the rule because they and section 127 are in section 13.5 of National Instrument 31-103 Registration Requirements and Exemptions

Below is a table of concordance showing where you find the self-dealing requirements in BCI 81-513.

Adoption of related consequential amendments
The Commission adopted these related consequential rule amendments so the rules refer to BCI 81-513:

• Appendix D of Multilateral Instrument 11-102 Passport System
• Appendix A of National Instrument 81-107 Independent Review Committee for Investment Funds

The Acting Executive Director specified Form 81-903 Report required under s. 9 of BCI 81-513.

Exemptions from the self-dealing requirements
BCI 81-513 includes exemptions in sections 11 and 12.

Exemptions obtained before self-dealing requirements in the Act were repealed
Section 11 of the rule says a person that was entitled to rely on an exemption from the self-dealing requirements in the Act before September 28, 2009 continues to have that exemption.

Exemptions obtained after self-dealing requirements in the Act were repealed
Section 12 of the rule provides an exemption to a person that received an exemption from that person’s principal regulator between September 28, 2009 and the effective date of this rule, if that person provided notice under Multilateral Instrument 11-102 Passport System that they intended to rely on the exemption in s 4.7 of MI 11-102 for a requirement in s. 121, 122, 124 or 126 of the Act.

A person that received an exemption between September 28, 2009 and the effective date of this rule that did not provide the notice under MI 11-102 must, if that person wants to rely on the exemption in s. 4.7 of MI 11-102, provide notice to the Commission, the Executive Director or that person’s principal regulator.

Publication for comment
We adopted BCI 81-513 and the related consequential amendments to MI 11-102 and NI 81-107 as an urgent rule. This rule and the related consequential rule amendments are effective for a maximum of 275 days from the date they are deposited. Without further action, the rule and related rule amendments would expire. To comply with the requirements of the Rule-Making Procedure Regulation, and make BCI 81-513 and the related consequential rule amendments effective beyond the 275 days, the Commission must publish them for comment.  Accordingly, this notice is also our request for comment on BCI 81-513 and the related consequential rule amendments.

Comments
We welcome your comments on the instrument and related consequential rule amendments.  Please submit your comments in writing on or before February 21, 2010.

Please address your submission to the British Columbia Securities Commission.

Deliver your comments to:

Noreen Bent
Manager and Senior Legal Counsel, Corporate Finance
British Columbia Securities Commission
P.O. Box 10142, Pacific Centre
701 West Georgia Street
Vancouver, British Columbia V7Y 1L2
e-mail: nbent@bcsc.bc.ca

We cannot keep submissions confidential because securities legislation requires publication of a summary of the written comments received during the comment period.

December 23, 2009

Brenda M. Leong 
Chair 

Martin Eady
Acting Executive Director

Ref:  BC Instrument 81-513 Self-Dealing
National Instrument 81-107 Independent Review Committee for Investment Funds
Multilateral Instrument 11-102 Passport System
BC Policy 13-601 Required Forms 
  Form 81-903F Report required under s. 9 of BC Instrument 81-513 Self-Dealing

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 section Securities Law & Policy: Policies & Instruments.