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Securities Law

NIN 95/44 - New Forms 1A, 20A (IP) and 20A (NIP) [NIN - Rescinded]

Published Date: 1995-11-24
Effective Date: 1996-01-01
The remaining unproclaimed sections of the Securities Amendment Act (No. 2), 1995, Securities Amendment Act, 1992, Securities Amendment Act, 1990, and Securities Amendment Act, 1989; the new Securities Regulation, B.C. Reg. 478/95 (the "Regulation") and the Rules, B.C. Reg. 479/95 (the "Rules") have been proclaimed to come into effect on January 1, 1996. The coming into force of these amendments requires the adoption of some new Forms. Effective January 1, 1996, the Superintendent of Brokers specifies the Forms attached to this Notice under section 158 of the Securities Act, S.B.C. 1985, c.83 (the "Act").

Form 1A - Demand for Production of Records and Things and Classes of Records and Things Under Section 10(2) of the Regulation and Section 128 of the Act

Form 1A is the Form required under section 10(2) of the Regulation for a demand for the production of records and things and classes of records and things where an investigator under section 128 of the Act compels witnesses to produce records and things and classes of records and things.

Form 1A was published in draft form for comment in the Special Supplement to the October 7, 1994 edition of the Weekly Summary.

Form 20A (IP) - Acknowledgment of Individual Purchaser and Form 20A (NIP) - Acknowledgment of a Purchaser that is not an Individual

Section 135 of the Rules requires that, where an issuer distributes a security to a person under section 128(a), (b), (c) or (h) of the Rules or to an individual under section 55(2)(4) of the Act, the issuer must obtain from the person, before the agreement of purchase and sale is entered into, an acknowledgment in the required form.

Form 20A (IP) and Form 20A (NIP) are the required forms of acknowledgment for the purposes of section 135 of the Rules. Form 20A (IP) must be used where the purchaser is an individual and Form 20A (NIP) where the purchaser is not an individual. "IP" and "NIP" stand for "Individual Purchaser" and "Non-Individual Purchaser", respectively.

Form 20A (IP) and Form 20A (NIP) were published in draft form for comment in the Special Supplement to the October 7, 1994 edition of the Weekly Summary and a number of the comments have been incorporated. All purchasers purchasing under the exemptions specified in section 135 of the Rules are required to give the new or expanded acknowledgments contained in paragraph 4 of Form 20A (IP) and in paragraph 5 of Form 20A (NIP). Subparagraph 5(a) of Form 20A (IP) reflects the new requirement for an issuer to obtain a signed Form 20A (IP) when distributing securities to an individual purchaser under section 55(2)(4) of the Act. Paragraph 5 of Form 20A (IP) and paragraph 6 of Form 20A (NIP) contain acknowledgments which mirror the new wealth and income thresholds in the definition of "sophisticated purchaser" found in section 1 of the Rules, and the attributes required of a purchaser under section 128(a), (b), (c) or (h) of the Rules.

Issuers should note that, under the new Rules, Form 20A (IP) and Form 20A (NIP) are not to be filed with the Commission. Instead, the signed Form 20A (IP) and Form 20A (NIP) are required to be retained by issuers for a period of 6 years after the distribution and made available to the Executive Director upon request.

Copies of New Forms

Copies of Form 1A, Form 20A (IP) and Form 20A (NIP) may be obtained from Superior Reproductions, 200 - 1112 West Pender Street, Vancouver, British Columbia, V6E 2S1.

Additional New Forms

Additional forms referred to in the Rules are in the process of being prepared and will be published prior to January 1, 1996, the effective date of the Rules and the amendments to the Act and Regulation.

DATED at Vancouver, British Columbia, on November 23, 1995.

Dean E. Holley
Superintendent of Brokers

REF: Form 1A
Form 20A (IP)
Form 20A (NIP)