NIN 93/19 - New Form of Certificate under section 60(3) of the Securities Act [NIN - Rescinded]

Published Date:	1993-09-10
Effective Date:	1993-09-09

Under section 60(3) of the Securities Act, the Superintendent of Brokers may issue a certificate that a reporting issuer is not in default of any requirement of the Act or Regulation. In the past, the practice has been for issuers to apply for and receive section 60 certificates worded in the broadest terms, certifying that the applicant issuer is not in default of any requirement of the Act or Regulation. It has become apparent that certificates drafted in those terms are too broad and could be construed as a determination by the Superintendent that the issuer has not violated any requirements of the legislation, including violations that the Superintendent could not possibly be aware of.

In recognition of this problem, section 11 of the Securities Amendment Act, 1992 amended section 60 of the Act to limit the scope of the Superintendent's certificate. Although that amendment has not yet been proclaimed in force, effective immediately, the Superintendent will not exercise his discretion under section 60(3) of the Act to issue a certificate that a reporting issuer is not in default of any requirement of the Act or Regulation.

The Superintendent will, in appropriate circumstances, issue a certificate under section 60(3) of the Act stating that a reporting issuer is not in default of two specific requirements of the Act and Regulation: filing financial statements required by the Act or Regulation and paying fees and charges prescribed by the Regulation. A sample of the new form of section 60(3) certificate is attached.

Issuers and their counsel are reminded that they must include, with their application for a certificate under section 60(3) of the Act, a cheque payable to the Minister of Finance for $100. Requests for certificates under section 60(3) of the Act are often made on a rush basis. While the staff will try to accomodate these requests, they may often not be able to provide the certificate on the same day as the request is made. Issuers and their counsel should consider this issue of timing when they intend to request a certificate under section 60(3).


Dated at Vancouver, British Columbia, on September 9, 1993.

Dean E. Holley
Superintendent of Brokers

Attachment



Certificate under section 60(3) of the Securities Act

[Date]

Re: [Issuer name] (the "Reporting Issuer") I certify that on this date the information on file with the British Columbia Securities Commission indicates that the Reporting Issuer is not in default of filing financial statements required by the Securities Act, S.B.C. 1985, c. 83, or the Regulation, or paying fees and charges prescribed by the Securities Regulation relating to those filings.

___________________________
Langley E. Evans, C.A.
Deputy Superintendent
Registration and Statutory
Filings