Skip Navigation
Securities Law

NIN 99/47 - Rescission of Local Policy Statement 3-17 Registrant Due Diligence [NIN - Rescinded]

Published Date: 1999-12-10
Effective Date: 1999-12-09

On November 26, 1999, concurrently with the recognition of the Canadian Venture Exchange Inc. ("CDNX") as an exchange in British Columbia under section 24(2) of the Act, the Commission rescinded Local Policy Statement 3-17 ("LPS 3-17"). Advance notice of the intention of the Commission to rescind LPS 3-17 was provided in NIN#99/401.

1 NIN#99/40, issued on November 10, 1999, has been rescinded and replaced with NIN#99/45.

LPS 3-17 came into effect in British Columbia on January 6, 1995. LPS 3-17 requires an underwriter of a junior issuer to prepare a due diligence report setting out the due diligence procedures undertaken by the underwriter. LPS 3-17 also requires the underwriter, in certain circumstances, to retain an independent qualified consultant to prepare an assessment report and sets out minimum review procedures that the consultant must undertake. These requirements are all unique to British Columbia.

On January 1, 1996, the Commission separated underwriter registration from the dealer category of registration. Given that CDNX has adopted a sponsorship policy that requires sponsors to have qualifications similar to registered underwriters and to conduct minimum review procedures and prepare a sponsorship report in a manner that is not materially different from what is required by LPS 3-17, the Commission has rescinded LPS 3-17.


Questions may be referred to:

Wayne Redwick
Director, Corporate Finance
British Columbia Securities Commission
(604) 899-6699
or (800) 373-6393 (in B.C.)

DATED at Vancouver, British Columbia, on December 9, 1999.

Joyce C. Maykut, Q.C.
Vice Chair

Ref: NIN#99/45

This NIN refers to other documents. These documents can be found at the B.C. Securities Commission public website atwww.bcsc.bc.cain the Policy Documents Database.