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Securities Law

NIN 98/65 - Adoption of National Instrument 33-106 Year 2000 Preparation Reporting [NIN - Rescinded]

Published Date: 1998-10-23
Effective Date: 1998-10-21

The Commission has determined that, in view of the substantial risk of material harm to investors and to the integrity of the capital markets posed by inadequate preparation by registered firms for the Year 2000 Problem, it is necessary and in the public interest to adopt without delay a rule dealing with reporting on preparation for the Year 2000 problem. As a result, the Commission has adopted National Instrument 33-106 "Year 2000 Preparation Reporting". This National Instrument is an initiative of the Canadian Securities Administrators to promote prompt and appropriate preparations for the Year 2000 Problem among participants in the Canadian capital markets.

The National Instrument was made as an urgent rule in Ontario, and has been or is expected to be adopted as an urgent rule in Alberta and Nova Scotia, as a commission regulation in Saskatchewan and as a policy in all other jurisdictions represented by the CSA. The exact timing and form of implementation may vary from jurisdiction to jurisdiction.

The full text of the National Instrument, B.C. Reg. 341/98, is being published in the Weekly Summary of October 23, 1998. This is the same as the text of the proposed rule published under NIN#98/63 on October 16, 1998, but has now been formally adopted and deposited with the Registrar of Regulations. This rule came into effect on October 19, 1998 and will remain in effect for only 275 days.

Although rules must normally be published for comment before being enacted, there is a provision in the Securities Act that permits the Commission to make a rule without first having to publish for comment where the Commission considers it necessary and in the public interest to do so and where the Minister consents to the making of the rule. The Minister has consented to the Commission’s making of the rule.

Under the National Instrument, the Year 2000 Problem generally includes any problem caused by (i) computer software incorrectly reading the date "01/01/00" as being the year 1900 or another incorrect year; (ii) computer software incorrectly identifying a date in the year 1999 or any year after that; (iii) computer software failing to detect that the Year 2000 is a leap year; and (iv) any other computer software error that is directly or indirectly caused by the problems set forth in (i), (ii) or (iii) above.

The National Instrument requires registered firms (registered dealers, underwriters and advisors, other than individuals) to file with the regulator information concerning their preparation for the Year 2000 Problem. In particular, each registered firm is required to file, within specified periods, an initial survey concerning its preparations for the Year 2000 Problem and management certificates concerning the progress of those preparations.

A registered firm may fulfil its obligations under the National Instrument by filing the required information with a specified self-regulatory organization ("SRO") of which it is member, provided that the SRO notifies the registered firm in writing that the SRO will file the information with the regulator.

Manner of Filing

All filings made under the National Instrument are required to be submitted electronically. A registered firm that is not a member of an SRO, as well as any SRO member firm that files directly with the regulator, may file the information required under the National Instrument in portable document format or in a format convertible into portable document format, either by diskette or by e-mail. Filings should be sent to the contact persons or e-mail addresses indicated below. Regulators not identified below should be contacted directly for filing instructions.

JurisdictionDiskette DeliveryE-mail

British Columbia Examination Administrator

Alberta Director, Capital Markets None

Manitoba Registrations Officer

Ontario General Manager,

Quebec Jean Lorrain, Directeur
de la conformité et de

An SRO member firm that files the required information with its SRO, rather than directly with the regulator, will be advised by the SRO as to the appropriate method of filing.

DATED at Vancouver, British Columbia, on October 21, 1998

Joyce C. Maykut, Q.C.
Vice Chair

Ref: National Instrument 33-106