NIN 99/27 - Amendments to the Securities Act [NIN - Rescinded]

The Securities Amendment Act, 1999, S.B.C. 1999, c. 20 ("Bill 64") received Royal Assent, and came into effect, on June 29, 1999. A copy of Bill 64 was attached to NIN#99/17 and can also be found at the Legislative Assembly website at www.legis.gov.bc.ca/bills/3rd_read/gov64-3.htm. Major investor protection amendments and streamlining amendments included in Bill 64 were discussed in NIN#99/17.

The amendments to the Securities Act contained in the Finance and Corporate Relations Statutes Amendment Act, 1998, S.B.C. 1988, c. 7 ("Bill 9"), which received Royal Assent on May 13, 1998, are not yet in force. Amendments included in Bill 9 relating to segregated funds (variable insurance contracts), insider reporting and take over bids were discussed in NIN#98/28.

Bill 98, the Cooperative Association Act, received First Reading on July 8, 1999. Section 226 of Bill 98 repeals and replaces the registration exemption in section 46(h) of the Securities Act relating to securities issued by an association to which the Cooperative Association Act applies. A copy of section 226 of Bill 98 is attached to this Notice. The Commission will issue a further notice when Bill 98 receives Royal Assent and comes into effect.

DATED at Vancouver, British Columbia, on July 8, 1999

Douglas M. Hyndman
Chair

Ref: NIN#98/28
NIN#99/17

Securities ActAmendments

226 Section 46 (h) of the Securities Act, R.S.B.C. 1996, c. 418, is repealed and the following substituted:

(h) membership shares, as defined in the Cooperative Association Act, issued by an association to which that Act applies, if the aggregate acquisition cost to the members, not counting the cost to the members of membership shares paid for by the application of patronage returns as defined in that Act, is not greater than a prescribed amount in any one year;

(h.1) membership shares and investment shares, both as defined in the Cooperative Association Act, issued by an association to which that Act applies, if the shares are paid for by the application of patronage returns as defined in that Act credited to the members or holders of investment shares;

(h.2) investment shares, as defined in the Cooperative Association Act, issued by an association to which that Act applies, if the investment shares are purchased only by members of the association who have been members of the association for at least 12 months immediately before the trade and if other prescribed conditions are complied with;