BOR 93/04 - Networking Arrangements Governed By The Principles Of Regulation [Rescinded]

IN THE MATTER OF THE SECURITIES ACT S.B.C. 1985, c. 83

AND

IN THE MATTER OF NETWORKING ARRANGEMENTS GOVERNED BY THE PRINCIPLES OF REGULATION

Order Under Section 167.12 of the Regulation

WHEREAS section 167.10(2) of the Securities Regulation, B.C. Reg. 270/86 (the "Regulation") requires a registrant that intends to enter into a networking arrangement, as defined in section 167.10(1) of the Regulation, at least 30 days before entering into the networking arrangement, to give written notice of its intention to the Superintendent of Brokers (the "Superintendent") providing all relevant facts relating to the networking arrangement;

AND WHEREAS the Canadian Securities Administrators has published guidelines respecting a registrant related to a financial institution and the financial institution, namely "Distribution of Mutual Funds By Financial Institutions" dated November 9, 1988 (the "First Principles"), "Full Service and Discount Brokerage Activities of Securities Dealers In Branches of Related Institutions" dated November 25, 1988 (the "Second Principles") and "Activities of Registrants Related To Financial Institutions" undated but effective July 1, 1990 (the "Third Principles") (collectively, the "Principles of Regulation");

AND WHEREAS the British Columbia Securities Commission has adopted the First Principles, Second Principles and Third Principles by, respectively, NIN#88/40 dated November 9, 1988, NIN#88/48 dated December 20, 1988 (as modified by NIN#90/7 dated March 7, 1990) and NIN#90/16 dated May 10, 1990;

AND WHEREAS the Superintendent has concluded that the requirement to file a notice of a networking arrangement under section 167.10(2) of the Regulation is not necessary to protect investors where a registrant related to a financial institution complies with the guidelines set out in the Principles of Regulation;

AND WHEREAS the Superintendent considers that it would not be prejudicial to the public interest to do so;

IT IS ORDERED under section 167.12 of the Regulation that section 167.10(2) of the Regulation does not apply to a registrant that is related to a financial institution provided that the registrant complies with the guidelines set out in the Principles of Regulation.

DATED AT Vancouver, British Columbia, on December 22, 1993.