BOR 95/15 - Acting as an Adviser With Respect to Certain Securities [Rescinded]

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

AND

IN THE MATTER OF ACTING AS AN ADVISER WITH RESPECT TO CERTAIN SECURITIES

Order Under Section 33 of the Securities Act

WHEREAS the Lieutenant Governor in Council, by B.C. Reg. 479/95 ordered, among other things, that, effective January 1, 1996, certain amendments to the Securities Act, S.B.C.1985, c.83 (the "Act") are brought into force;

AND WHEREAS section 20(1)(c) of the Act requires that a person be registered when acting as an adviser with respect to a security;

AND WHEREAS, effective January 1, 1996, section 32 of the Act is amended to clarify that the exemptions set out in section 32 of the Act provide only an exemption from the requirement under section 20(1)(a) of the Act to register to trade and do not provide an exemption from the requirement under section 20(1)(c) of the Act to register to act as an adviser;

AND WHEREAS, given the nature of some of the securities described in section 32 of the Act and the regulation of some of those securities or their issuers under other statutes, it is appropriate to provide an exemption from the requirement in section 20(1)(c) of the Act to be registered to act as an adviser respecting those securities;

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 section 33 of the Act that section 20(1)(c) of the Act does not apply to a person who acts as an adviser with respect to a security described in:

1. section 32(a), (b), (f), (h) or (i) of the Act;

2. section 32(d) of the Act, provided that the security has a credit rating that is equal to or higher than the level indicated in the table below:

unless the person knows or ought reasonably to know that there has been an announcement by the rating agency that the rating may be down-graded to a level below the level so indicated;

3. section 32(e) of the Act, provided that the person is registered or exempted from registration under the Mortgage Brokers Act, R.S.B.C. 1979, c.283;

4. section 32(n) of the Act, provided that the person is licensed as an agent, nominee or salesperson under the Real Estate Act, R.S.B.C. 1979, c.356; and

5. section 32(o) of the Act, provided that the person is licensed as an insurance agent or insurance salesperson under the Financial Institutions Act, S.B.C. 1989, c.47.

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