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Securities Law

NIN 2000/02 - Adoption of National Instrument 81-102 Mutual Funds and Related Documents Rescission of National Policy 34 and National Policy Statement No. 39 [NIN - Rescinded]

Published Date: 2000-01-28
Effective Date: 2000-01-26
Rescinded Date: 2000-06-30

The Commission, together with other members of the Canadian Securities Administrators (“CSA”) has adopted National Instrument 81-102 Mutual Funds (“NI 81-102”) and Companion Policy 81-102CP (the “CP”). NI 81-102 establishes a new regime governing all publicly offered investment funds that fall within the definition of mutual fund in securities legislation.

The full text of NI 81-102 (B.C. Reg. 2/2000) and the CP are being published in a Special Supplement to the Weekly Summary of January 28, 2000. NI 81-102 and the CP will be effective on February 1, 2000.

The Commission adopted NI 81-102 and the CP, following publication for comment on June 27, 1997 and again on March 19, 1999, and after a detailed review of all comments received following each publication. The CSA developed a detailed Summary of Comments Received, an Analysis of the Significant Issues and Concerns Received, and the Response of the CSA for each comment period, which were referred to in NIN #99/9 and in NIN #99/39. NIN #99/39 provided advance notice of NI 81-102 and the CP.

Concurrent with the adoption of NI 81-102 and the CP, the Commission has also adopted National Instrument NI 81-101 Mutual Fund Prospectus Disclosure (“NI 81-101”), Form 81-101F1 Contents of Simplified Prospectus, Form 81-101F2 Contents of Annual Information Form (collectively, the “Forms”) and Companion Policy 81-101CP (“81-102CP”). NIN#2000/1 provides additional information about NI 81-101, the Forms and 81-101CP.

Certain consequential amendments to the Securities Rules were required to ensure consistency with NI 81-102 and also with NI 81-101. These consequential amendments (B.C. Reg. 3/2000) are being published with NIN#2000/3 and are also effective on February 1, 2000.

NI 81-102 has been or will be adopted as a rule by British Columbia, Alberta, Manitoba, Ontario and Nova Scotia, as a Commission regulation in Saskatchewan and as a policy in all other jurisdictions represented by the CSA.

Rescission of National Policies, CSA Notice and NINs

Effective February 1, 2000, National Policy 34 Unincorporated Issuers: Requirements to Maintain a Register of Security Holders, National Policy Statement No. 39 Mutual Funds and CSA Notice #93/5National Policy Statement No. 39 - Mutual Funds: Section 16 Sales Communications are rescinded and superseded by NI 81-102. Also effective that date, the following notices will lapse: NIN#90/4 National Policy No. 39 - Mutual Funds Distributor’s Report and Auditor’s Letter;NIN#92/30 National Policy Statement No. 39 - Mutual Funds: Draft Section 2.09 - Certain Related Parties Acting as Principals in Purchases or Sales of Portfolio Debt Securities and Proposed Revocation of Section 4.03 - Dealer Manager Acting as Principal; and NIN#94/5 National Policy Statement 39 - Definition of Debt-Like Securities.

DATED at Vancouver, British Columbia, on January 26, 2000.

Douglas M. Hyndman

Ref: NI 81-101
Form 81-101F1
Form 81-101F2
NI 81-102
NP 34
NPS 39
CSA Notice #93/5

This NIN refers to other documents. These documents can be found at the B.C. Securities Commission public website at in the Policy Documents database.

Consequential Amendments Relating to NI 81-102 Mutual Funds

The Securities Rules, B.C. Reg. 194/97, is amended by repealing section 3(13) and substituting the following

(13) The financial statements required to be filed by an issuer under the Act or the regulations,

(i) if the issuer is a corporation, must be approved by the directors and the approval evidenced by the signature, or facsimile of the signature, of 2 directors duly authorized to evidence the approval,
(ii) if the issuer is a limited partnership, must be approved by the general partner and the approval evidenced by the signature, or facsimile of the signature, of the general partner, or
(iii) if the issuer is a mutual fund that is a trust, must be approved and the approval evidenced in accordance with NI 81-102.

The Securities Regulation, B.C. Reg. 196/97, is amended

(a)by adding the following to section 1

“NI 81-102” means National Instrument 81-102 Mutual Funds,

(b)by adding the words“as defined in NI 81-102”between the words“money market mutual fund”and“, 0.01%”in Item 17 (b) of section 22(1), and

(c)by repealing section 22(8)