NIN 93/21 - Fiscal Agency Agreements - Applications for Discretionary Exemption Orders [NIN - Rescinded]

Published Date:	1993-11-26
Effective Date:	1993-11-25

On September 9, 1993, the Superintendent of Brokers issued NIN#93/18 entitled "Fiscal Agency Agreements - Restrictions on Exemption Orders". The notice set out staff concerns relating to the form of compensation paid under fiscal agency agreements for which discretionary relief under sections 33 and 59 of the Securities Act was required. The notice also set out several conditions that would be required in the future for fiscal agency agreements requiring discretionary relief under the Act. The notice was published in the Weekly Summary of September 10, 1993, which was publicly distributed on or about September 15, 1993.

The notice did not provide for a transition period in the application of the new requirements. Several applicants affected by the notice have requested that their application be "grandfathered". These requests have been carefully considered, with regard for the interests of the applicants as well as the public interest.

The decision has been made that grandfathering will only be provided for those applications where

1. the application was filed no later than September 15, 1993,

2. the Fiscal Agency Agreement is dated prior to September 15, 1993, and

3. written stock exchange acceptance of the Fiscal Agency Agreement was received (if required) prior to September 15, 1993.

All subsequent applications will be expected to comply with the terms and restrictions set out in NIN#93/18.

The very limited transitional provisions in this instance are unusual and reflect the serious nature of the concerns that arose during the review of fiscal agency procedures.


DATED at Vancouver, British Columbia, on November 25, 1993.

Dean E. Holley
Superintendent of Brokers