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Securities Law

NIN 98/19 - Adoption of National Instrument 81-105 and Companion Policy 81-105CP Mutual Fund Sales Practices and Revocation of Canadian Securities Administrators Notices [NIN - Rescinded]

Published Date: 1998-04-24
Effective Date: 1998-05-01

On April 17, 1998, the British Columbia Securities Commission made a Commission rule that establishes a new regime governing mutual fund sales practices effective May 1, 1998.

The full text of the Mutual Fund Sales Practices rule, B.C. Reg. 131/98, which is known as National Instrument 81-105, as well as the Companion Policy to that rule, which is known as Companion Policy 81-105CP, are being published in the Weekly Summary of April 24, 1998.

The Commission adopted the rule following publication on July 25, 1997 of a proposed rule and the subsequent detailed review of written comments received during the formal comment period that expired on September 30, 1997. The Commission worked with the securities regulators in the other jurisdictions to develop a detailed Summary of Comments Received, an Analysis of the Significant Issues and Concerns Received and Response of the Canadian Securities Administrators (CSA), which was published under NIN#98/5, in the Weekly Summary of February 6, 1998. The Commission wishes to thank those who provided comments on the proposed national instrument.

The Alberta and Ontario Securities Commissions have also adopted National Instrument 81-105 as a rule. The rule, as well as Companion Policy 81-105CP, are scheduled to take effect in those jurisdictions on May 1, 1998. La Commission des valeurs mobilières du Québec and certain other jurisdictions have adopted National Instrument 81-105 as a policy effective May 1, 1998. Other jurisdictions will be adopting National Instrument 81-105 as a rule or Commission regulation after they go through the required process in their jurisdiction.

Revocation of CSA Notices

The CSA Notices, CSA#93/1 "Mutual Fund Sales Incentives", CSA#95/2 "Mutual Fund Sales Incentives - Point of Sale Disclosure Statement" and CSA#81-302 "Sales of Mutual Funds in Upcoming RRSP Season", are revoked effective May 1, 1998, the date that National Instrument 81-105 comes into force.

DATED at Vancouver, British Columbia, on April 23, 1998

Joyce C. Maykut, Q.C.
Vice Chair

Ref: NI 81-105
NIN #98/5