BOR 95/12 - Trust Companies, Insurers and Portfolio Managers in the Other Provinces and Territories of Canada [Rescinded]

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

AND

IN THE MATTER OF TRUST COMPANIES, INSURERS AND PORTFOLIO MANAGERS IN THE OTHER PROVINCES AND TERRITORIES OF CANADA

Order Under Sections 33 and 59 of the Securities Act

WHEREAS sections 29(1) and 55(1) of the Securities Act, S.B.C. 1985, c. 83 (the "Act") deem that, for purposes of Part 5 and section 55 of the Act,

(a) a trust company or an insurer is acting as principal when it purchases or sells as an agent or trustee for accounts that are fully managed by it, and

(b) a portfolio manager is acting as principal when the portfolio manager purchases or sells as an agent for accounts that are fully managed by the portfolio manager;

AND WHEREAS under sections 31(2)(5) and 55(2)(4) of the Act, sections 20 and 42 of the Act do not apply to a trade where a person purchases as principal, and the trade is in a security that has an aggregate acquisition cost to the purchaser of not less than a prescribed amount;

AND WHEREAS the prescribed amount for the purpose of sections 31(2)(5) and 55(2)(4) of the Act is $97,000 under sections 90(1) and 129(1) of the Securities Rules, B.C. Reg. 479/95;

AND WHEREAS under section 1(1) of the Interpretation Act, R.S.B.C. 1979, c. 206, a trust company and insurance company are defined as a trust company and insurance company authorized to carry on business in British Columbia under the Financial Institutions Act, S.B.C. 1989, c.47;

AND WHEREAS the Commission considers that "portfolio manager" in sections 29(1) and 55(1) of the Act means a portfolio manager in British Columbia registered or exempt from registration under the Act;

AND WHEREAS the registration and prospectus exemptions in sections 31(2)(5) and 55(2)(4) of the Act are available to a portfolio manager registered or exempt from registration under the Act and to a trust company and insurer authorized to carry on business in British Columbia, but are not available to a portfolio manager registered or exempt from registration under the laws of a province or territory of Canada other than British Columbia, nor to a trust company or insurer authorized to carry on business in a province or territory of Canada other than British Columbia;

AND WHEREAS it would be expedient to provide registration and prospectus exemptions, where the purchaser is a trust company or insurer authorized to carry on business, or a portfolio manager registered or exempt from registration, in a province or territory of Canada other than British Columbia, that parallel the exemptions found in sections 31(2)(5) and 55(2)(4) of the Act;

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

EFFECTIVE January 1, 1996, IT IS ORDERED under sections 33 and 59 of the Act that sections 20 and 42 of the Act do not apply to a trade in securities where:

. a trust company or an insurer, authorized under the laws of a province or territory of Canada other than British Columbia to carry on business in such province or territory, purchases as an agent or trustee for accounts that are fully managed by it, a security that has an aggregate acquisition cost of not less than $97,000; or

. a portfolio manager registered or exempt from registration under the laws of a province or territory of Canada other than British Columbia purchases, as an agent for accounts that are fully managed by the portfolio manager, a security that has an aggregate acquisition cost of not less than $97,000.

DATED at Vancouver, British Columbia, on December 21, 1995.

Douglas M. Hyndman
Chair

REF: Interim LPS 3-24