13-303 - Sedar Operational Changes [CSA - Rescinded]

The Canadian Securities Administrators wish to advise electronic filers of the following changes in the operation of the SEDAR system.

1. Electronic Payment of Annual SEDAR Filing Service Charge
   
   Reporting issuers that file continuous disclosure documents in electronic format using SEDAR must remit an annual filing service charge to CDS INC ("CDS"), the filing service contractor. This annual charge is intended to cover the costs associated with electronic fling of regular continuous disclosure documents.
   
   To date, the SEDAR system has not facilitated electronic payment of this annual charge. From time to time, the CSA have received comments from the filing community questioning the use of a non-electronic payment process when this payment could be facilitated electronically using the SEDAR system. As well, CDS has determined that the administration costs of invoicing and collecting the annual filing service charges using non-electronic means can be significantly reduced by requiring electronic payment of this annual charge.
   
   In response to these concerns, commencing January 4, 1999, all SEDAR reporting issuers will be required to pay their annual continuous disclosure filing service charges electronically using the SEDAR system at the time of filing their annual financial statements. This annual electronic payment will cover continuous disclosure filing services for the calendar year in which the annual financial statements of the SEDAR reporting issuer are required to be filed. Single jurisdiction issuers that have been invoiced for the period ended July 1999 and that have paid this charge will be entitled to an appropriate credit to compensate them for the change to a calendar year service period. As well, there will be a code update to the SEDAR Filer Software immediately prior to the implementation date in January 1999 to support this change in the electronic payment process.
   
   
2. Hours of Operation
   
   Nationa1 Instrument 13-101 provides that electronic filings may be submitted to the SEDAR server on any business day between the hours of 7:00 a.m. and 11:00 p.m. Eastern Standard Time or Eastern Daylight Savings Time, whichever is in effect. Since the electronic filing through SEDAR was implemented in early 1997, filers have also been able to make filings during these hours on weekends and holidays, except during periods when the SEDAR system has been shut down for maintenance, code update or other similar requirements.
   
   Experience has indicated that the number of filings made on weekends and holidays is very small, such that the benefit to filers is significantly outweighed by the cost of keeping the SEDAR system operational during these time periods. As well, a variety of factors have led to an increase in the need for maintenance shutdowns on weekends. Therefore, effective immediately, subscribers to the SEDAR filing service will no longer be able to access the SEDAR server for filings or searches on any Saturday or Sunday or on any national holiday. However, filers and other members of the public will continue to be able to search for and download electronic copies of public filings made with the Canadian securities regulatory authorities during weekends and holidays using the SEDAR website at www.sedar.com.
   
   
3. Support For Windows Operating Systems
   
   The SEDAR Filer Software that is used to file and retrieve electronic filings was initially designed to run on Microsoft Windows 3.l/3.11 and Windows 95. Subsequently, support for Windows NT was added.
   
   Microsoft has announced that it no longer provides support for Windows 3.1/3.11 and, as a result, these operating systems will not be fully Year 2000 compliant. Consequently, the CSA has determined that, effective April 30, 1999, Windows 3.1/3.11 will no longer be supported operating systems for the SEDAR Filer Software.
   
   Additionally, Microsoft has recently introduced Windows 98 as a successor to its Windows 95 operating system. CDS is currently testing Windows 98 for compatibility with the SEDAR Filer Software and it is anticipated that support for Windows 98 will be implemented commencing in July 1999.

For more information, contact:

Jennifer Yolland
British Columbia Securities Commission
(604) 899-6717

Warren Cabral
Alberta Securities Commission
(403) 422-2490

Karen Eby
Ontario Securities Commission
(416) 593-8242

Pauline Van Winden
Commission des valeurs mobilières du Québec
(514) 940-2199, Ext. 4488

Wade Nesmith
Lang Michener Lawrence & Shaw
Barristers & Solicitors
(604) 691-7415

December 11, 1998