BOR 98/10 - Testing of the Mutual Reliance Review System for Prospectuses Under National Policy 43-201 [Rescinded]

IN THE MATTER OF THE SECURITIES ACT R.S.B.C. 1996, c. 418

AND

 IN THE MATTER OF TESTING OF THE MUTUAL RELIANCE REVIEW SYSTEM FOR PROSPECTUSES UNDER NATIONAL POLICY  43-201

Order Under Section 76

WHEREAS section 61 of the Securities Act, R.S.B.C. 1996, c. 418 provides that a person must not distribute a security unless a preliminary prospectus and prospectus respecting that security has been filed with the Executive Director and receipts obtained for those documents from the Executive Director;

AND WHEREAS, on June 19, 1998, the Commission published for comment National Policy 43-201, entitled "Mutual Reliance Review System For Prospectuses And Initial AIFS" (the "Policy");

AND WHEREAS the Policy and related Memorandum of Understanding establish a mutual reliance review system ("MRRS") for prospectuses and annual information forms, under which a person (a "filer") will file materials, including a preliminary prospectus and prospectus, with all jurisdictions in which the securities will be offered but will generally deal only with its principal regulator, as defined in the Policy, in connection with materials filed under the MRRS;

AND WHEREAS, under the Policy, the principal regulator may issue an MRRS decision document, relating to a preliminary prospectus and prospectus filed under the Policy, which will confirm that a receipt for the preliminary prospectus or prospectus has been issued by the principal regulator and the non-principal regulators that have not opted out of the MRRS for the materials;

AND WHEREAS the notice publishing the Policy for comment (NIN#98/30) indicated that the members of the Canadian Securities Administrators had authorized the use of the MRRS on a test basis and would, in the near future, solicit volunteers to participate in the testing phase;

AND WHEREAS the Commission has solicited volunteers to participate in the testing of the MRRS and wishes to provide for a single MRRS decision document to be obtained by the filer, rather than the Executive Director providing a receipt for the filer’s preliminary prospectus and prospectus in addition to the MRRS decision document issued by the filer’s principal jurisdiction;

AND WHEREAS the Commission considers it would not be prejudicial to the public interest to provide an exemption from the requirement in section 61 of the Act to obtain a receipt from the Executive Director where a filer is participating in testing of the MRRS system and obtains a national decision document under the Policy from its principal regulator. 

EFFECTIVE August 26, 1998, IT IS ORDERED under section 76 of the Act that a person making a distribution of securities using the procedure set out in the Policy, where that person is a filer whose principal regulator is not the Executive Director in British Columbia, is exempt from the requirement contained in section 61 of the Act to obtain a receipt for a preliminary prospectus, and for a prospectus, from the Executive Director, provided that:

(a)           the filer obtains from its principal regulator a MRRS decision document confirming the issuance of a receipt in British Columbia for the filer’s preliminary prospectus; and

(b)           the filer obtains from its principal regulator a MRRS decision document confirming the issuance of a receipt in British Columbia for the filer’s prospectus.

DATED at Vancouver, British Columbia, on September 9, 1998.

Douglas M. Hyndman
Chair

REF:      National Policy 43-201
                NIN#98/30