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Securities Law

NIN 94/20 - Draft National Policy Statement No. 43 Advertisements of Securities and Related Sales Practices [NIN - Rescinded]

Published Date: 1994-10-21
Effective Date: 1994-10-14

The Canadian Securities Administrators (the "CSA") are publishing for comment Draft National Policy Statement No. 43 (the "Draft Policy"). The Draft Policy establishes minimum national standards for advertisements of securities.


In May, 1987 the Ontario Securities Commission formed a private sector industry committee to examine advertising of securities and recommend changes to existing policy on advertising. In response to that Committee's recommendations, the CSA formed a committee in the fall of 1988 to draft a national policy on advertising. The CSA published for comment a draft policy in November, 1989.

The CSA received extensive comment on the draft policy, and has considered and incorporated many of those comments when preparing the Draft Policy.

In preparing the Draft Policy, the CSA considered a number of issues which, in its experience, have been a cause for concern with advertisements for securities. Although many of these concerns have been addressed directly in the Draft Policy, the CSA decided not to deal specifically with its concerns regarding advertised private placements. For instance, the CSA considered including a provision in the Draft Policy which would require an issuer or selling securityholder to afford a purchaser the right, in the agreement of purchase and sale for the advertised private placement, to disclaim the agreement within two business days following execution of the agreement. Consideration was also given to whether the agreement of purchase and sale should include representations regarding the materials that the investor has been provided with and disclosure regarding restrictions attached to the securities regulatory authorities. Accordingly, in addition to any specific or general comments you may have on the Draft Policy, the CSA asks that you provide specific comments on these issues.

Comments Requested

The CSA invite comment on the Draft Policy. Please submit 6 copies of any comment letter by January 16, 1995 to:

Director, Policy and Legislation
British Columbia Securities Commission
1100 - 865 Hornby Street
Vancouver, British Columbia
V6Z 2H4

Comment letters submitted in response to requests for comments are placed in the public file in certain jurisdictions and form part of the public record unless confidentiality is requested. Comment letters will be circulated among the securities regulatory authorities for purposes of finalizing the Draft Policy whether or not confidentiality is requested.

Accordingly, although letters for which confidentiality is requested will not be placed in the public file, freedom of information legislation may require the securities regulatory authorities in certain jurisdictions to make the comment letters available. Persons submitting comment letters should be aware that the press and members of the public may be able to obtain access to any comment letter.

DATED at Vancouver, British Columbia, on October 14, 1994.

Douglas M. Hyndman


REF: NIN#89/37