NIN 2000/06 - Trust Account Requirements [NIN - Rescinded]

Effective February 1, 2000, the Commission issued Blanket Order 33-502 (BC) and the Executive Director issued BOR#2000/1. BOR 33-502 (BC) continues certain exemptions provided in BOR#95/6 that exempted investment dealers from the application of certain sections of the Securities Rules, including sections 57(2) and 58. BOR#2000/1 revokes BOR#95/6, as the exemptions are now included in consequential amendments to the Securities Rules.

The Commission adopted National Instrument 81-102 Mutual Funds (“NI 81-102”) effective February 1, 2000.¹

¹ See NIN#2000/2.

At the same time, the Commission published consequential amendments to the Securities Rules, B.C. Reg. 3/2000, that relate to the handling of money held by certain registrants for clients and to other matters.²

² See NIN#2000/3.

B.C. Reg. 3/2000 contains similar provisions in section 58.1 of the Rules to BOR#95/6. As well, new section 58.2 of the Rules exempts all registrants from the requirements of sections 57(2) and 58 of the Securities Rules if NI 81-102 applies. NI 81-102 establishes a framework for how a registrant should handle client money it holds for the purchase of a mutual fund or from the redemption of a mutual fund.

Registrants should note that other provisions of the Securities Rules relating to the establishment and operation of trust accounts continue to apply.

DATED at Vancouver, British Columbia, on February 3, 2000.

Douglas M. Hyndman
Chair

Ref: NIN#2000/2 BOR#95/6
NIN#2000/3 BOR#2000/1
B.C. Reg. 3/2000 BOR 33-502 (BC)
NI 81-102

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