NIN 96/10 - Blanket Order #96/9 Registrant Information to be Furnished to Clients [NIN - Rescinded]
| Published Date: | 1996-04-12 |
|---|---|
| Effective Date: | 1996-04-11 |
Section 50(1) requires a registrant - including a registered dealer or adviser and an individual registered to trade or advise on behalf of the dealer or adviser - to furnish a client or prospective client, on request, with the following information:
- the registrant's category and expiry date of registration
- any conditions of registration that the Executive Director or a self regulatory organization has imposed on the registrant
- any current administrative proceeding by a securities or exchange contracts regulator or by a self regulatory organization against the registrant in any jurisdiction
- any previous administrative proceeding by a securities or exchange contracts regulator or by a self regulatory organization against the registrant in any jurisdiction where an order, ruling or other adverse finding was made against the registrant (for an unlimited period where the registrant is an individual; for the last five years where the registrant is not an individual)
- the commission and fees the registrant charges and the practice the registrant follows in setting fees
- where the registrant is an individual, the registrant's education including completed courses and examinations required by the Executive Director or similar courses and examinations required in another jurisdiction
- any registration or licensing under the Financial Institutions Act, S.B.C. 1989, c. 47, or comparable legislation of another jurisdiction
- where the registrant is a dealer, a copy of its most recently prepared Statement of Financial Condition or other financial statements acceptable to the Executive Director
- where the registrant is a dealer, a list of its partners, directors and senior officers, prepared and certified not more than 30 days before the request from the client or prospective client.
Registrants should refer to section 50(1) of the Rules for an authoritative description of disclosure requirements.
Only the information set out in the last two bullets was required to be disclosed by a registered dealer under section 86(1)(a) of the Securities Regulation, B.C. Reg. 270/86, as it was on December 31, 1995 (the "Old Regulation"). Section 86(1)(b) of the Old Regulation, similar to section 50(3) of the Rules, required a registered dealer to inform its clients on every statement of account or by other means approved by the Commission, that certain information was available on request.
Because the information required to be disclosed under section 50(1) of the Rules is more extensive than previously required to be disclosed under section 86(1)(a) of the Old Regulation and because of the limited space available on a client statement of account, staff of the Commission are prepared to accept the following disclosure on client statements of account as sufficient compliance with the requirements of section 50(3) of the Rules:
"Our Statement of Financial Condition as of our most recent financial year end and a list of our directors and senior officers is available upon request. Our clients in British Columbia are entitled to certain additional information about us, including information about commissions and fees that we charge, and about any administrative proceedings that may relate to the firm or our staff."
Comments or questions about transitional relief provided by BOR#95/8, the alternative transitional relief provided by BOR#96/9 or staff's interpretation of section 50(3) of the Rules, including the form of disclosure described in this Notice, may be directed to Ross McLennan, Director, Registration (telephone number: Greater Vancouver 660-0001; all other regions of British Columbia 1-800-373-6393).
DATED at Vancouver, British Columbia, on April 11, 1996.
Dean E. Holley
Executive Director
REF: BOR#96/9
BOR#95/8