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Securities Law

NIN 91/23 - Introduction of Interim Local Policy Statement 3-43 - Government Strip Bonds [NIN - Rescinded]

Published Date: 1991-12-13
Effective Date: 1991-12-11
The British Columbia Securities Commission has revoked, effective immediately, Local Policy Statement 3-43 dated February 1, 1987 (the "Former Policy") and Blanket Order #87/17 (the "Former Order"). The Commission is releasing, with this Notice, Interim Local Policy Statement 3-43 (the "Interim Policy") and Blanket Order #91/12 (the "Current Order"), which are effective immediately.

The Commission has adopted the Interim Policy to reflect current legislative and policy requirements in British Columbia. Several changes have been made to make the Interim Policy more uniform than the Former Policy with Ontario Securities Commission Policy No. 1.6 - Strip Bonds. The new form of Information Statement, prepared by the Investment Dealers Association of Canada (the "IDA") and attached as Appendix A to the Interim Policy, is an approved form of information statement for the purposes of the Interim Policy, where the government strip bonds being distributed or traded do not differ in any material way from those described in the Information Statement in Appendix A. The Interim Policy contains certain transitional provisions.

The Current Order, like the Former Order, contains registration and prospectus exemptions for trading and distribution of Government Strip Bonds. The Commission proposes to remove the registration exemption and thereby limit the trading of government strip bonds to persons registered in an appropriate registration category under the Securities Act. While the Commission does not know who is using the registration exemption available for the sale of government strip bonds, the Commission is of the view that government strip bonds, like other strip bonds, are sufficiently complex that only persons who are subject to the educational, suitability and other requirements imposed on registrants should be permitted to trade government strip bonds. Because this proposal would change the current practice, the Commission will not make this change before March 1, 1992.

Interested persons are encouraged to direct written comments to the Commission, attention Adrienne Wanstall, Executive Director, Policy and Legislation, on or before March 1, 1992.

DATED at Vancouver, British Columbia on December 12, 1991.

Douglas M. Hyndman

REF: LPS#3-43