NIN 88/07 - Venture Capital Issuers [NIN - Rescinded]

Published Date:	1988-06-03
Effective Date:	1988-06-01

A concern has been expressed that the restriction in Local Policy Statement 3-13 "Policy Guidelines for a Venture Capital Issuer Planning to Make a Distribution" prohibiting a venture capital issuer (a "VCI") from investing more than 25% of its funds in any one entity has been an impediment to the Small Business Venture Capital Program (the "SBVC Program") under the Small Business Venture Capital Act (British Columbia).

The Superintendent has determined that the investment restriction in section 4.1.1 of Local Policy Statement 3-13 will not apply to prohibit a VCI from investing more than 25% of its funds from share subscriptions in any one entity, provided that:

1. the VCI is registered and in good, standing under the SBVC Program;

2. the specific entities in which the VCI proposes to invest are disclosed in the VCI's prospectus;

3. the VCI's prospectus has appended to it an advanced ruling of the Administrator of the SBVC Program for each proposed investment;

4. all contracts relating to each investment of the VCI are disclosed in its prospectus as material contracts and are made available to prospective investors; and

5. each entity in which the VCI proposes to invest is a reporting issuer.

This notice should be considered as an exercise of discretion by the Superintendent and not as an amendment of Local Policy Statement 3-13.


DATED at Vancouver, British Columbia, this 1st day of June, 1988.