NIN 99/19 - Rescission of Local Policy Statements 3-01, 3-03, 3-21, 3-25, 3-31 and 3-41 [NIN - Rescinded]
| Published Date: | 1999-06-25 |
|---|---|
| Effective Date: | 1999-06-24 |
In the interest of updating and simplifying regulatory standards, the Commission is rescinding the following Local Policy Statements:
- Local Policy Statement 3-01 - "Factors to be Considered in Arriving at a Decision that a Natural Resource Property Has Sufficient Merit to Justify an Expenditure Thereon of Risk Capital Derived From Public Subscription" ("LPS 3-01")
- Local Policy Statement 3-03 - "Requirements re Filing of Preliminary Prospectuses and Prospectuses (National Issues)" ("LPS 3-03")
- Local Policy Statement 3-21 - "Share and Unit Offering of Unlisted Issuers and Options and Warrants Available to Registrants Participating in Such Offerings" ("LPS 3-21")
- Local Policy Statement 3-25 - "Natural Resource Issuer - ‘Best Efforts’ Prospectus and Amendments to Prospectus Arising from Market Conditions" ("LPS 3-25")
- Local Policy Statement 3-31 - "Incentive Options to Directors and Employees - Unlisted Issuers" ("LPS 3-31")
- Local Policy Statement 3-41 - "Lawyer’s Conflicts of Interest" ("LPS 3-41").
LPS 3-03 describes those documents that a national issuer files with a preliminary prospectus and prospectus. The list of required documents in LPS 3-03 is no longer appropriate. The current list of documents required to be filed for a national issuer is attached as Appendix A to proposed National Policy 43-201 ("NP 43-201"). Although the Commission has not yet adopted NP 43-201, a national issuer should use the list of documents in Appendix A of NP 43-201. Once NP 43-201 is adopted, national filers should use the list of documents attached to the finalized version of NP 43-201, whether or not they are filing under the mutual reliance review system discussed in NP 43-201.
LPS 3-21 deals with minimum price and other terms of share and unit offerings of unlisted issuers. It was primarily intended to deal with "pre-public" offerings or initial public offerings by issuers that were ultimately expected to list on the VSE. The Commission feels that the subject matter of LPS 3-21 is more appropriately dealt with through the listings policies of the exchanges.
LPS 3-25 deals with amendments to a "best efforts" prospectus. Issuers should refer to LPS 3-02 for guidance with respect to amendments to a preliminary or final prospectus.
LPS 3-31 deals with incentive options to directors and employees of unlisted issuers. LPS 3-31 was introduced prior to the VSE’s rules and policies dealing with conditional listings. It was primarily intended to deal with "pre-public" offerings or initial public offerings by issuers that were ultimately expected to list on the VSE. Current VSE policies and the policies of other exchanges provide a more modern regime for dealing with incentive stock options. LPS 3-31 also sets out percentage limitations that are no longer appropriate.
LPS 3-41 imposes requirements relating to disclosure of conflicts of interest involving lawyers acting for issuers in dealing with the Commission. Since LPS 3-41 was adopted, the Law Society of British Columbia has developed newer and more up-to-date rules dealing with conflicts of interest. In addition, section 107 of the Securities Rules already deals with disclosure of a lawyer’s interest where the lawyer is named in a prospectus as having prepared or certified any part of it.
DATED at Vancouver, British Columbia, on June 24, 1999. \
Douglas M. Hyndman
Chair
LPS 3-02
LPS 3-03
LPS 3-21
LPS 3-25
LPS 3-31
LPS 3-41
Proposed NP 43-201
Section 107, Securities Rules