NIN 2000/17 - Financial Institutions Act - Mutual Fund Trustee Exemption [NIN - Rescinded]

The Commission is publishing for information purposes B.C. Reg. 142/2000 (“the Regulation”) to exempt corporations, on certain conditions, from the business authorization requirements of section 70 of the Financial Institutions Act, R.S.B.C. 1996, c. 141 (the “FIA”).

The FIA requires a trust corporation to obtain a business authorization from the Financial Institutions Commission before it carries on a trust business. The Regulation provides an exemption from these requirements if:

• the corporation acts as the trustee of the mutual fund trust in British Columbia, 
  
•  the corporation is also the manager of the mutual fund trust, and
  
• the securities of the trust are distributed by means of a prospectus or simplified prospectus, for which the Executive Director has issued a receipt.

The exemption is available only to corporations acting both as managers and trustees of the particular mutual fund trust. The Regulation is effective May 5, 2000.

Questions may be referred to any of:

Noreen Bent
Senior Legal Counsel
Policy and Legislation
British Columbia Securities Commission
(604) 899-6741
or (800) 373-6393 (in B.C.)
nbent@bcsc.bc.ca

Azmina Manji
Deputy Superintendent, Credit Unions and Trust Companies
Financial Institutions Commission
(604) 660-0138
azmina.manji@gems8.gov.bc.ca

June Elder
Policy Advisor
Financial and Corporate Sector Policy Branch
Ministry of Finance and Corporate Relations
(250) 387-3513
june.elder@gems2.gov.bc.ca

DATED at Vancouver, British Columbia, on May 17, 2000.


Joyce C. Maykut, Q.C.
Vice Chair

Ref: 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. An electronic version of the FIA is available at the Queen’s Printer website at www.qp.gov.bc.ca/bcstats/.

1 In this regulation,“mutual fund trust” means

(a) a “mutual fund” as defined in section 1 of the Securities Act organized as a trust,

(b) a “mutual fund trust” as defined in section 132 (6) of the Income Tax Act (Canada), or

(c) a trust that is not yet described by paragraph (b) but is acting in anticipation of making an election described in section 132 (6.1) of the Income Tax Act (Canada).

Mutual Fund Trustee exemption from section 70 of theFinancial Institutions Act

2 (1) A corporation is exempt from section 70 of the Financial Institutions Act on condition that

(a) it acts as the trustee of a mutual fund trust in British Columbia,

(b) it is the manager, within the meaning of National Instrument 81-102, of the mutual fund trust, and

(c) the securities, as defined in section 1 of the Securities Act, of that mutual fund trust are only distributed by means of a prospectus or simplified prospectus for which the executive director, as defined in section 1 of the Securities Act, has issued a receipt under the Securities Act.

(2) A corporation is exempt under subsection (1) only for the purposes of the mutual fund trust described by subsection (1).