NIN 92/03 - Waivers Consequential to Local Policy Statement 3-07 [NIN - Rescinded]
| Published Date: | 1992-02-14 |
|---|---|
| Effective Date: | 1992-02-12 |
NIN#89/44, entitled "Waivers Consequential to Local Policy Statement 3-07", was issued on December 21, 1989 and dealt with two issues concerning waivers which arose from the implementation of the Policy. This Notice, which replaces NIN#89/44, clarifies the position of the Superintendent with respect to those issues.
The Superintendent confirms the rescission, effective March 1, 1990, of NIN#88/23, entitled "Waiver of Requirement to Enter into an Escrow Agreement or Pooling Agreement in Respect of Securities Issued by an Exchange Issuer under Section 55(2)(5) of the Securities Act". As a result of the rescission of NIN#88/23, and the Superintendent's decision not to specify a form of escrow agreement or pooling agreement in respect of a distribution under section 55(2)(5) of the Securities Act, S.B.C. 1985, c. 83 (the "Act"), securities issued by an exchange issuer under section 55(2)(5) are subject to a 12 month hold period, pursuant to section 134(2)(b)(i) and (3)(e)(iii) of the Securities Regulation, B.C. Reg. 270/86 (the "Regulation").
The Superintendent also confirms the waiver, effective March 1, 1990, of the requirement under section 134(6)(b)(i) of the Regulation to enter into an escrow agreement or pooling agreement in respect of trading shares issued in accordance with Part 6 of the Policy. As a result of this waiver, trading shares that are issued pursuant to Part 6 of the Policy by an issuer that subsequently becomes an exchange issuer and that are held by a person that is not a control person satisfy the resale rules in section 134(6)(b)(i) of the Regulation and therefore become free trading on the date the issuer becomes an exchange issuer.
While the wording of NIN#89/44 may have been ambiguous on this point, the March 1, 1990 waiver does not, and was never intended to, waive the requirement under section 134(2)(b)(i) or (3)(e)(iii) of the Regulation to enter into an escrow agreement or pooling agreement in the required form in respect of securities issued by an exchange issuer under section 55(2)(5) of the Act after the issuer became an exchange issuer.
DATED at Vancouver, British Columbia, on February 12, 1992.
Wade D. Nesmith
Superintendent of Brokers